Journal of Hospitality and Tourism

Volume 19, Issue 2, 2014 Letter from the Editor Articles of Special Topic Social Networking for Employee/Management

Page 1

Communication in the Hospitality Industry JANE F. BOKUNEWICZ A Practical Guide to Giving Students a Competitive

Page 17

Advantage for Employment by Teaching them Social Media Tools BILL QUAIN, MICHAEL SCALES, & CLIFF WHITHEM Ben and Jerry’s: How To Benefit From Being a B Corp

Page 35

XANSHUNTA L. POLK Social Media and Technology: The Influence

Page 59

on Hawaii’s Hotels CATHRINE LINNES, PAUL KOWALSKI, JOSEPH LEMA, WENDY LAM & JEROME AGRUSA Renaissance ArtsFaire’s Economic & Socio-Cultural

Page 74

Impacts on a Local Community SIRIPORN MCDOWALL, JAY M. LILLYWHITE, JENNIFER E. SIMONSEN Call for Papers

Page 96

Historically and Predominantly Black Colleges and Universities, Consortium of Hospitality Educators Published at: Tuskegee University The Andrew F. Brimmer College of Business and Information Science Tuskegee, Alabama 36088

Journal of Hospitality and Tourism ISSN: 1535-0568 (print) ISSN: 2329-9479 (online)

Volume 19, Issue 2, 2014 Editor-in-Chief Dr. Steven R. Lonis-Shumate, Tuskegee University Assistant Editor-in-Chief Dr. Cynthia Mayo, Delaware State University Dr. Ernest Boger, University of Maryland Eastern Shore Associate Editor Dr. Faye Hall Jackson, Tuskegee University Executive Editor Dr. Deanne Williams-Bryant, Virginia State University Editorial Board Dr. Jerome Agrusa, Hawaii Pacific University Dr. Wendy Agrusa, Hawaii Pacific University Dr. Wintson Awadzi, Delaware State University Dr. Beverly Bryant, North Carolina Central University Dr. Desmond Omotayo Brown, University of Kentucky Dr. Rachel Chen, University of Tennessee Dr. K.S. (Kaye) Chon, The Hong Kong Polytechnic University Dr. Ruppert Downing, University of Illinois Dr. Francis Kwansa, University of Delaware Dr. Daniel Lema, University of Southern Mississippi Dr. Karen Lieberman-Nissen, Purdue University Dr. Li-Chun Lin, Montclair State University Dr. Peter J. Linden, Chicago State University Dr. Mary McCray, Virginia State University Dr. Pender Noriega, Argosy University Dr. Megan Johnson, Tuskegee University Dr. David Rivera, East Carolina University Dr. Jeremy Wolter, Auburn University


VolumeSocial 19, Issue 2, 2014 Networking for Communication

0

Letter from the Editor Articles of Special Topic Social Networking for Employee/Management

Page 1

Communication in the Hospitality Industry JANE F. BOKUNEWICZ A Practical Guide to Giving Students a Competitive

Page 17

Advantage for Employment by Teaching them Social Media Tools BILL QUAIN, MICHAEL SCALES, & CLIFF WHITHEM Ben and Jerry’s: How To Benefit From Being a B Corp

Page 35

XANSHUNTA L. POLK Social Media and Technology: The Influence

Page 59

on Hawaii’s Hotels CATHRINE LINNES, PAUL KOWALSKI, JOSEPH LEMA, WENDY LAM & JEROME AGRUSA Renaissance ArtsFaire’s Economic & Socio-Cultural

Page 74

Impacts on a Local Community SIRIPORN MCDOWALL, JAY M. LILLYWHITE, JENNIFER E. SIMONSEN Call for Papers

Page 96

Historically and Predominantly Black Colleges and Universities, Consortium of Hospitality Educators Published at: Tuskegee University The Andrew F. Brimmer College of Business and Information Science Tuskegee, Alabama 36088


Dear Reader:

ISSN: 1535-0568

The new academic year is nearly upon us which means that it is time for a fresh start…a clean slate. These beginnings always bring hope of newness. New classes, new students, new research endeavors, new Andrew F. Brimmer College of Business and Information Science

methods, etc. Many of the articles in this volume will provide faculty and industry trainers with new methods to educate students and employees alike. Although there was not a call for a “theme” for this edition, many of the articles highlight social media and its uses in education and in industry. There are also thought provoking articles that focus on current industry trends of corporate social responsibility and economic impacts. The findings and conclusions of these articles have practical implications for staff, management, and faculty. Again, I ask that you please continue to discuss publication opportunities in the Consortium Journal with your colleagues. It is vital that we have a steady stream of quality manuscripts under review so that we can continue to provide readers with exceptional material. Thank you for your support. Sincerely Steven R. Lonis-Shumate, Ph.D.

Consortium Journal of Hospitality and Tourism 19:2, 2014, 1-16 ISSN: 1535-0568

Social Networking for Employee/Management Communication in the Hospitality Industry JANE F. BOKUNEWICZ Hospitality and Tourism Management Studies The Richard Stockton College of New Jersey Many hospitality organizations have readily adopted the use of Social Networking for communication with customers but fewer are using it to enhance communication with employees. The purpose of this study was to evaluate the efficacy of using online social networking in a hospitality organization to facilitate employee engagement by improving communication between employees and management. The study was conducted as a field experiment that was designed to assess whether or not an employer sponsored, on-line social networking site in a hospitality organization could create a heightened feeling of belonging among employees potentially increasing their social capital, commitment to the organization, and job satisfaction. The study revealed that significant barriers existed making it difficult to achieve full participation by employees in the online social networking site. Activity levels on the social networking site were relatively low and participation by management was negligible. The quantitative analysis revealed no significant relationship between participation in the on-line social networking site and employee commitment to the organization. A negative relationship was found between participation in the on-line social networking site in the satisfaction subcategory of communication. The greatest decrease in satisfaction post implementation was among salaried employees for overall satisfaction and for the subcategories of communication and Address correspondence to Jane F. Bokunewicz, Ph.D., Hospitality and Tourism Management at The Richard Stockton College of NJ, 609.703.1946, [email protected]

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rewards. Employees who participated in the on-line social networking site experienced an increase in social capital as indicated by the number of participants who reported new friendships, the strength of the friendship ties, and subsequent face-to-face meetings. The qualitative analysis revealed that although many employees believed that an online social networking site could be an effective tool in enhancing employee communication with management, management was reluctant to participate because of time constraints and discomfort in revealing personal information about oneself. KEYWORDS Social networking, social capital, job satisfaction, commitment

INTRODUCTION Organizations strive to communicate effectively with employees in order to create a shared vision so that everyone is working towards accomplishing the goals and objectives of the company. Large organizations however, face communication challenges in reaching employees and engaging them to become productive members of a team. In global organizations, geographic distance can physically separate employees making communication difficult. Even in single unit organizations employees can become isolated from each other and from top management because of hierarchical structures and the necessity to operate on shifts. Organization reporting lines in a hierarchy are structured so that each person has one superior (Weber, 1966) and information flows up and down through a chain of command within each operating department. This can create challenges in communicating across departmental lines and could inhibit collaboration and sharing of ideas. In companies that operate 24 hours per day such as many hospitality organizations for example, night-shift employees rarely have the opportunity to interact with day-shift employees and vise versa. Additionally, executives focused on strategic planning and long-range goals often lose contact with employees on the front line. These communication barriers can make it difficult for organizations to form a cohesive team with employees working together to advance the companies mission and vision. Traditionally, many organizations have relied on communication methods like memos, flyers posted on bulletin boards, and employee newsletters to communicate important information to employees. In recent years technological advances such as email, voice messages, and company intranet sites, have replaced or supplemented these

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traditional methods but even these newer, computer mediated communication methods are largely one directional and do not facilitate employee interaction and engagement. On-line social networking has emerged as a new platform for communication in organizations, primarily as a vehicle to communicate with customers and more recently, as a vehicle for communicating with employees As on-line social networking evolves as an emerging area in organizational communication research is needed to explore its effectiveness.

LITERATURE REVIEW Recent developments in computer-mediated-communication have led to adoption of social networking applications in organizations in the US and elsewhere. These social networking applications have been shown to increase and promote informal relationships, information sharing, and learning in organizations. Large companies such as Deloitte, IBM, Microsoft, Best Buy and Humana have implemented employer facilitated social networking sites to enable employees to engage with one another and ultimately improve communication (Brandel, 2008; Miller, 2013). Prior research has examined if collaboration, learning, information sharing, and productivity are related to the participation in on-line social networking (Duta & Fraser, 2009; Ferreira & Plessis, 2009; Hastings, 2009; Violino, 2008). Hastings (2009) and Violino (2008) found that new computer applications made available through social networking sites increased workers ability to collaborate effectively because of improved file sharing capability. Ferreira and Plessis (2009) argued that workers in a South Africa university perceived increases in collaboration and knowledge sharing related to participation in an online social networking site. As useful as these studies are, they tended to focus mainly on increases in productivity through collaboration and knowledge sharing, and their overall impact on organizational effectiveness through company commitment and job satisfaction is still unknown. In particular, extant research points to significant relationships between social capital and job satisfaction (Requena, 2003), but the question about the possible impact of participation in on-line social networking on, commitment, and job satisfaction is unknown. Social capital has been studied as an antecedent to job satisfaction (Requena, 2003). Debates exist in the current body of literature surrounding the impact that on-line communities, in the form of the Internet, have on social capital. While some researchers have found a decline in social capital associated with Internet usage (Kraut, Patterson, Lundmark, Kiesler, Mukophadhyay, Scherilis, 1998; Putnam, 1995), and others have found positive impacts to social capital in the form of the associated increases in the

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number of weak ties (Haythornthwaite, 2002; Wellman, 1999). Granovetter (1983) argues that weak ties increase social capital by providing access to resources outside the close circle of a person’s primary network by creating bridges to other networks that would normally not be accessible through strong ties.

METHODOLOGY A quasi-experimental approach was used to evaluate whether or not a relationship existed between participation in the on-line social networking site and employee job satisfaction, commitment to the company, and social capital. The experiment employed a mixed method research approach, analyzing both quantitative and qualitative data. The experiment was performed as a field experiment in an existing casino hotel with management approval and cooperation. The study was guided by the following research questions: 1. What is the nature of the relationship if any between participation in an on-line social networking site and employee commitment to the organization? 2. What is the nature of the relationship if any between participation in an on-line social networking site and job satisfaction? 3. What is the nature of the relationship if any between participation in an on-line social networking site and Social Capital? Table 1 Research Design for Current Study Randomized Control Group Pretest – Posttest Design Group Pretest Treatment Experimental Group (R)* P1 Participation in Social Network Control Group (R) N1 Asked not to Participate

Posttest P2 N2

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A Social Networking site was developed specifically for the casino hotel where the experiment was conducted. The site contained the following features similar to those on the popular social networking site Facebook. Employees were able to: 1.

2. 3. 4. 5. 6. 7. 8. 9.

Create a profile including a personalized picture and various personal information including job title, birthday, hobbies, favorite movies, favorite books, favorite quotations, and favorite restaurants. Employees may enter all or none of those items. Post Photos Post Videos Post Status Updates Like the posts of other members Request Friends Approve Friend Requests View the profiles of other members Join Private groups

Prior to implementing the social networking site a pre survey designed to measure employee job satisfaction, and company commitment was distributed to both the research group and the control group. Employees in the research group were asked to complete the pre-survey, and to agree to participate on the social networking site for a period of six-months, then completed a post survey. Employees in the control group were asked to complete the pre-survey, and to abstain from participating on the social networking site, then complete the post survey after a period of roughly nine months. The post survey for the experimental group contained additional questions about the employees’ participation on the site. These questions were designed to measure social capital and they were structured in such a way to gain information about the relationships formed between employees participating on the site and the strength of their friendship ties. The purpose of the questions was to assess the number of new friends met on-line, how many of those on line interactions lead to face-to-face interaction, and to evaluate the strength of the friendships formed compared to those formed off line. The survey instrument included questions designed to measure employee commitment as defined by Mowday, Steers, and Porter (1979). Questions concerning job satisfaction were taken from the Paul E. Specter Job satisfaction survey (Specter, 1997). Four job satisfaction subcategories (i.e. rewards, communication, co-workers, and

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supervisors) were measured. The post survey of the research group that participated on the site included seven questions designed to measure social capital. Post participation qualitative data was obtained through a small number of interviews of a randomly selected list of employees from the research group who completed the post survey. The researcher recorded the interviews with the permission of the interviewees. The recorded transcripts were reviewed and coded to identify trends or themes in the responses.

QUANTITATIVE DATA ANALYSIS Of the 700 pre-surveys that were distributed, 108 were returned including 59 from the control group and 49 from the research group. Post surveys were distributed after the completion of the nine-month test period to all pre-survey respondents who were still employed by the organization. Sixty-one completed post surveys were returned including 35 from the control group and 26 from the research group (See table 1). Table 2 Survey Distribution and Response Summary Survey Distribution and Response Summary

Pre-Surveys Distributed Returned Post-Surveys Distributed Returned Unusable Valid

Research Group

Control Group

Total

350 49

350 59

700 108

49 26 14 12

59 35 4 31

108 61 18 43

Some of the returned surveys however, could not be used in the final analysis. A question was asked on the post survey to determine if respondents had participated or not participated on the site as agreed to in the instructions distributed with the pre-surveys. The cases of those respondents who did not participate as agreed were eliminated from the data set to avoid contamination of the results. The remaining dataset of forty-three

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Bokunewicz

respondents including thirty-one from the control group and twelve from the research group was used as the basis for the data analysis. The host company for the study was a casino hotel in a large eastern US city that had been opened for over 32 years. Many of the employees have been with the company since it’s opening, thus, influencing the age distribution of the employee sample: 45% of the employees are 50 years old or older, while 68% are 40 years and older. The 43 respondents were mainly in the older age brackets and predominantly of the male gender. Ninety-six percent of the participants were 40 years and older with 63% falling into the range of 50 – 59 years of age. Sixty-five percent of the participants were male and 35% female. Twenty-three percent are classified as salaried workers indicating that they hold the rank of supervisor or above, while 77% are classified as hourly indicating they are line level employees (see Table 2). Table 3 Population Descriptive Statistics Variable

N

%

Age Groups 20 -29 30 -39 40-49 50-59 60-69

1 1 9 27 5

2% 2% 21% 63% 12% 100% -

Age (Ungrouped) Gender Female Male

15 28

35% 65% 100%

Level Hourly Workers Salary Workers

33 10

77% 23% 100%

Research Assignment Control Group Research Group Total

31 12 43

72% 28% 100%


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RESEARCH QUESTIONS Research Question 1 – What is the nature of the relationship if any between participation in an on-line social networking site and employee commitment to the organization? This question examines any possible change in reported organizational commitment scores before and after the social networking intervention, measured through a pre and post survey. Organizational commitment was measured by 4 questions on the survey. The pre and post scores for the four questions were collapsed into two variables, pre-commitment and post-commitment. The change in commitment scores was calculated as the absolute difference between the pre and post commitment scores. Table 3 presents an analysis of differences in commitment scores between the research and control groups, and the results of a Mann-Whitney test performed to test the statistical significance of these differences (See Table 3). Indeed there were some changes in commitment scores, with the research group reporting higher levels of scores (1.25 points higher than the control group), but the change was not statistically significant. Similarly, there was minimal change in commitment scores by gender, age, and salaried workers. As a result, the hypothesis that a relationship exists between participation in an on-line social networking site and commitment could not be supported. Research Question 2 – What is the nature of the relationship if any between participation in an on-line social networking site and employee job satisfaction? The changes in survey scores between the pre and post survey, for the questions relating to satisfaction were analyzed to measure the relationship between participation in the on-line social networking site and job satisfaction. Satisfaction was measured by 14 survey questions organized into subcategories of rewards, communication, and feelings towards supervisors and co-workers. The subcategories were analyzed independently and together as one overall satisfaction variable. The change between pre and post was calculated and then analyzed by comparing the difference of mean scores of the research group to the difference of mean scores of the control group. A Mann-Whitney U test was conducted to evaluate the hypothesis that there is a difference in pre and post satisfaction between the research group and the control group. The Mann-Whitney test (see table 3) showed marginally significant differences between the two groups, z=-1.83, p< .10, with employees in the research group reporting

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significantly lower satisfaction scores in the subcategory of Communication (i.e., a negative mean change of -7.2). Table 4 Difference in Mean Satisfaction/Commitment Scores by Group Control Group

Research Group

Mann Whitney

N

Mean

Median

N

Mean

Median

Z

Pvalue

Change in Commitment Scores

31

5.7345

6.0000

12

7.1930

7.0000

-1.253

0.210

Change in Communication Scores

31

-4.9401

-5.0000

12

-7.2237

-7.0000

-1.838

0.066

Change in Reward Scores

31

0.5285

1.0000

12

0.8640

0.5000

-0.027

0.978

Change in Feelings towards Supervisors/Coworker s Scores

31

0.2630

0.0000

12

0.0833

0.0000

-0.370

0.711

Change in Satisfaction Scores

31

0.8362

1.0000

12

0.8070

-0.5000

-0.163

0.871

The negative changes in the mean satisfaction scores pre and post were most prominent among salaried employees (See table 4). The Mann-Whitney test showed a significant difference between salaried employees and hourly employees, z=-2.3, p< .05, with salaried employees reporting significantly lower overall satisfaction scores (i.e., a negative mean change of -5.17 for salaried employees compared to positive 2.6 for hourly). The test also showed a significant difference, z=-2.56, p< .05, with salaried employees reporting significantly lower satisfaction scores in the subcategory of Communication (i.e., a negative mean change of -8.7 for salaried employees compared to -4.6 for hourly). Additionally the test showed a significant difference, z=-1.96, p= .05 with salaried employees reporting significantly lower satisfaction scores in the subcategory of Rewards (i.e., a negative mean change of -1.4 for salaried employees compared to positive 1.2 for hourly).

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Table 5 Difference in Mean Satisfaction / Commitment Scores by Level Hourly N

Mean

Salary Median

N

Mean

Median

Mann Whitney PZ value

Change in Commitment Scores

33

6.2673

6.0000 10

5.7263

6.0000

-0.636

0.524

Change in Communication Scores

33

-4.6391

-5.0000 10

-8.6737

-10.3684

-2.559

0.010

33

1.2349

1.0000 10

-1.4000

-1.0000

-1.964

0.050

33

0.7016

0.0000 10

-1.4000

-1.5000

-1.469

0.142

33

2.6468

2.0000 10

-5.1737

-2.8684

-2.332

0.020

Change in Reward Scores Change in Feelings towards Supervisors/Coworkers Scores Change in Satisfaction Scores

There was no significant difference in any of the communication subcategories by gender or by age under 50 years, or 50 years of age and older. A negative relationship between participation on the social networking site and the satisfaction subcategory of communication was found suggesting that satisfaction decreased with participation on the social networking site. Research Question 3: What is the nature of the relationship if any between participation in an on-line social networking site and Social Capital? Of the twelve subjects in the research group, seven reported meeting new friends on-line, and the number of new friends met ranged from 4 – 24 friends. Four of the subjects reported subsequently meeting these new friends face to face. The number of new friends met face to face ranged from 1 – 4 friends. Subjects were asked to rate the strength of the ties with their new friends on a Likert scale of 1 – 5 with 1 being “very strong” and 5 being “very weak”. Strength of the friendship ties is a measure of social capital that is important in comparing the ties formed online to those formed in face-to-face, offline relationships (Kraut et al., 1998). Two participants rated the friendship ties as a 5 indicating very weak ties. Seven participants however rated the ties from 1 – 3 indicating moderate to strong ties. Activity levels on the site were relatively low. Eight out of twelve of the participants reported visiting the site only once per week. The other four reported visiting

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more than 1 time per week ranging from 2 – 4 times. Five participants reported never posting on the site. Seven reported posting from 1 – 4 times per week. Participants spent one hour or less per week viewing the activity of others. Five reported spending one hour viewing the activity of others and five reported spending less than one hour. Two participants reported spending no time viewing the activity of others. In summary, although activity levels were low, social capital clearly increased for those employees in the research group. More than half of the participants met new friends by participating on the site and four of those who met new friends subsequently met with at least one friend face to face. This is relevant because if not for the implementation of the social networking site, employees may not have had the opportunity to meet these friends. If activity levels were higher the increase in social capital may have even been greater.

QUALITATIVE DATA ANALYSIS Post participation, qualitative interviews were conducted for several purposes. First, to gain an understanding of why participation on the site was low and second to gain an understanding of employee views on the importance of employee/management communication in an organization as well as their views on the effectiveness of the social networking site in contributing to enhancing these interactions. Nineteen interviews were conducted with randomly selected subjects from the research group who completed the post survey. Although each subject had his or her own personal perspective on the issues discussed, several themes emerged that are relevant in explaining the outcomes of this experiment. The subjects who were interviewed agreed almost unanimously that communication between senior management and line employees is “very important”. Of the nineteen participants interviewed, seventeen respondents described it as “important” or “very important”. Interview subjects were split on whether or not the social networking site was an effective vehicle for enhancing communication between management and employees. Five employees responded that they did not think it was effective for various reasons. One person said he is too busy to use the site. Another person said that he felt management would be reluctant to “open themselves up” by putting personal information on the site so it would not be effective. Two of the people interviewed were concerned that something they post “could be used against you”. Fourteen of the subjects interviewed thought that the social networking site could be an effective tool for enhancing employee and management communication. The most


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commonly cited aspect of the social networking site that was enjoyed by the interview subjects was the posting of pictures both for employee recognition and for communication of company happenings. Many of the interview subjects however qualified their opinion with conditions that would need to be met in order to make the site effective. For example, several subjects said it would be very effective if upper management engaged actively on the site. Others said it would only be effective if more employees were able to access it. The access issue was raised by five of the subjects interviewed as an obstacle to the effectiveness of the social networking site. The concern most often cited regarding access was that many casino employees do not have access to computers at work. Five interviewees expressed the opinion that the lack of postings and engagement by management inhibited the effectiveness of the site. Participant “AF”, a mid level manager thought the social networking site would be a great tool if management took the time to post things or to comment on the posts of others. “AF” explained that posted pictures of parties and things that happened in the company but “really didn’t get a reaction from the people that wanted to.” “AF” suggested things that would make the site more effective like posting the daily newsletter. “AF” also suggested that it could be used to highlight employee accomplishments. “AF” explained that in the past the company had a monthly magazine that featured employees and “everyone couldn’t wait until it came out”. “AF” described how employees enjoyed reading stories about themselves and their co-workers. “AF” suggested that the social networking site could be used to facilitate this type of employee recognition if managers and the Human Resources department made it a practice to feature employee accomplishments on a regular basis. Two themes emerged from the interviews regarding reasons that management did not actively engage on the site. One was time constraint and the other was the unwillingness to reveal personal information about oneself or ones department in a public forum such as the Social Networking site. Four of the interviewees reported that they were too busy to access or post on the site regularly. More prevalent however was the expressed apprehension about revealing personal information on the site. Some subjects described their apprehension in terms that signify either directly or indirectly the emotion of fear.

IMPLICATIONS Online social networking has the potential to be an effective communication tool in the workplace yet it cannot be expected to correct problems that already exist in an organization. It should be implemented with caution to ensure that it does not decrease

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satisfaction and commitment. For an employer sponsored on-line social networking site to be effective for organizational communication a significant commitment by management and a series of regular posts and interaction is needed to hold the interest of employees and ensure continued participation. Throughout the study it became clear that employee access to a social networking site was a barrier in achieving companywide participation. In a hospitality organization many employees are front line workers without access to a computer at work. This limits their opportunity to participate to break times or personal time at home. Many employees do not have access to computers at home either because of financial means or because the computer they have may be shared by the family and often used by the children. Additionally employees have other concerns besides work to deal with during their personal time. Organizations implementing on-line social networking sites for organizational communication must ensure that all employees have access to computers at work and are provided opportunities to use them in order for the social networking model to be successful. In addition to computer access, language barriers exist that made full participation challenging. During the training period it became apparent that many employees, including some in the research group did not have a full command of the English language. Even one of the vice presidents explained that the reason he did not post on the site was that he was not confident enough with his English speaking ability to post a status update or comment on the posts of others. Online social networking sites for organizational communication in diverse organizations should include a translation feature like the one that is part of Facebook where employees can translate information easily into their native language. In order to keep employees interested in an on-line social networking site management must engage regularly in activities that are appreciated by employees. Existing employee recognition efforts could be added to the social networking site by management or by a designated employee. Although managers reported being too busy to participate, an alternate employee could be assigned to post information on management’s behalf. For example, a designated employee from the Human Resources department could be empowered to post employee recognition content from all departments. Upper management could empower their administrative assistants to post and comment on their behalf.


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Limitations Some weaknesses of the study are the following: The results of this study may not be generalizable to other organizations because although the social network in this study suffered from low activity other similar social networks have experienced higher participation rates with more frequent postings. Low sample size – due mainly to lack of participation on the social networking site. This reduced the scope of the analysis. Studies have shown that the primary link between social capital and job satisfaction is through trust (Ahmadi, Ahmadi, Zandieh, 2011; Requena, 2002). Although the dimensions of trust were not measured in the survey, the fact it was revealed in the qualitative interviews calls for further attention to its conceptualization in future studies. These weaknesses do not detract from the importance of the study or the relevance of the findings. A number of respondents expressed the view that the social networking site could be effective as a communication medium in the workplace. Participants enjoyed the pictures and videos that were posted about company happenings. They also enjoyed seeing the profiles of co-workers that they might not have had the opportunity to meet in person. Employees enjoyed participating in contests where employees posted photos of various themes and the employee whose photo received the most “likes” won a prize. Site views increased dramatically during these contest periods and employees reported their enjoyment of the contests in the qualitative interviews. Employees expressed their feeling that they would have liked to see more employee recognition and opportunities to give feedback to management through discussions on the site. Again, these positive benefits were hampered by lack of management participation. One marketing employee was instrumental in posting company information on the site on a regular basis. During the qualitative interviews one mid level manager, used a very insightful analogy to describe why this wasn’t enough to hold the interest of the employee population. She said, the marketing employee “was like a cheerleader but we needed to have the coach involved.”

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CONCLUSIONS The introduction of an on-line social networking site into an organization will not unilaterally facilitate communication improvements between employees and management. Management engagement on the site is necessary in order for employees to see the value of continued participation. Without this engagement an increase in organizational social capital that has been previously associated with increased job satisfaction and organizational commitment in other studies will not materialize. Indeed the introduction of an on-line social networking site may reduce job satisfaction by highlighting communication issues that already exist within the organization. This may lead to dissatisfaction by creating fear among employees and management to reveal information about themselves and by adding new responsibilities to an already heavy workload. In order for an on-line social networking site to improve communication management must openly engage on the site and both employees and management must feel comfortable in participating without fear of negative consequences.

Future Research Further research is needed to understand why management is reluctant to reveal information about themselves in an online format. Is this a phenomenon that will change over time as on-line social networking becomes more ubiquitous? The introduction of Email to the business world was a slow process. At first technology savvy employees embraced it but many wanted the hard copy paper communication. Now paper memos are almost obsolete in many organizations.

APPLICATION EXERCISE The results of this study revealed that employees believed that an employer sponsored, on-line social networking site could be an effective tool for communication in the workplace yet management was reluctant to participate resulting in low activity on the site in general. What steps could have been taken to reduce management’s reluctance and encourage frequent and active engagement on the site. Specifically what types of things could have been posted on a regular basis to capture employees’ interest? What type of training would have facilitated a better response? What type of policies might have been established? Could incentive have been used to encourage management and


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employee participation? Students can be broken into small groups to brainstorm ideas then a spokesperson from each group can report their recommendations to the class.

REFERENCES Ahmadi, S. A. A., Ahmadi, F., & Zandieh, A. (2011). Social capital and its impact on job satisfaction, Interdisciplinary Journal of Contemporary Research in Business, 3(2), 511-523. Brandel, M. (2008, August). Social networking goes corporate Computerworld, 42(32), 25-27. Retrieved February 9, 2012, from ABI/INFORM Global. (Document ID: 1537247881). Dutta, S. & Fraser, M. (2009). The social capital scramble. Chief Executive, 243, 3842. Retrieved January 16, 2012, from http://search.proquest.com/docview/ 212114536?accountid=10559 Ferreira, A. & Du Plessis, T. (2010). Effect of online social networking on employee productivity. SA Journal of Information Management, North America, 11(1). Retrieved March 12, 2012, from http://www.sajim.co.za/index.php/SAJIM/article/view/397 Granovetter, M. S. (1973). The strength of weak ties. American Journal of Sociology, 78(6), 1360-1380 Hastings, R. (2009). Collaboration library technology reports, 45. Retrieved March 3, 2012, from Academic OneFile. Haythornthwaite, C. (2002). Strong, weak and latent ties and the impact of new media. The Information Society, 18, 385-401. Kraut, R., Patterson, M., Lundmark, V., Kiesler, S., Mukophadhyay, T., & Scherlis, W. (1998). Internet paradox: A social technology that reduces social involvement and psychological well-being? American Psychologist, 53(9), 1017-1031. Miller, R. (2013, May). How Humana Got 26,000 Employees to Use an Internal Social Network. CITEworld. Retrieved March 13, 2014, from www.citeworld.com. Mowday, R. T., Steers, R. M., & Porter, L. W. (1979). The measurement of organizational commitment. Journal of Vocational Behavior, 14, 224-247. Putnam, R. D. (2000). Bowling alone : The collapse and revival of American community. New York: Simon & Schuster. Requena, F. (2003). Social capital, satisfaction and quality of life in the workplace. Social Indicators Research, 63(3), 331-360. Spector, P. E. (1997). Job satisfaction, application, assessment, causes, and consequences. Thousand Oaks, CA: Sage Publications. Violino, B. (2008). Social networking. AIIM E - Doc Magazine, 22(4), 12-15. Wellman, B. (1999). Networks in the global village : life in contemporary communities. Boulder, Colorado: Westview Press. Weber, Max (1966). Economy and Society (Guenther Roth and Claus Wittich, trans.). New York: Bedminister Press. (Original work published in 1917).


A Practical Guide to Giving Students a Competitive Advantage for Employment by Teaching them Social Media Tools BILL QUAIN Hospitality and Tourism Management Studies The Richard Stockton College of New Jersey MICHAEL SCALES Hospitality and Tourism Management Studies The Richard Stockton College of New Jersey CLIFF WHITHEM Hospitality and Tourism Management Studies The Richard Stockton College of New Jersey Employers are specifically seeking students who can handle their Social Media Campaigns, yet the majority of schools have not incorporated meaningful Social Media teaching into their curriculum. Although most institutions do use Social Media themselves, and most professors understand the rudiments of the subject (and use it for their own professional enhancement) a review of the literature revealed that students are not receiving well-directed instruction on using the tools in business. The authors examine several reasons for the lack of high-quality, Social Media instruction. Among them are: the difficulty in implementing new courses, the lack of ready-to-use content for instructors, and the feeling that “students already know how to use Social Media Tools.” In addition to offering suggestions for overcoming institutional inertia, the authors Address correspondence to Michael Scales, EdD, Hospitality and Tourism Management Studies at The Richard Stockton College of New Jersey, 609-626-6838, [email protected]

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provide faculty colleagues with a step-by-step guide for a semester-long project utilizing Social Media Tools in business settings. Finally, the authors offer suggestions to help Hospitality HR Departments to increase their organization’s employee orientation through Social Media Tools training. KEYWORDS Social media, hospitality education, hospitality curriculum, employee orientation

INTRODUCTION Why Aren’t Schools Teaching Social Media for Business Applications? There is no doubt that all colleges and universities are using Social Media to recruit and retain students. But, individual professors are lagging behind their institutions. In a 2012 survey of 3,875 faculty, by Pearson Publishing (with the Babson Research Group) results showed that only 33% of the faculty members used Social Media Tools (SMT) as a teaching aid, while 44% of them used SMT for professional reasons, and 64% used them for personal applications. (Pearson, 2012) The study determined that “blogs and Wicki’s” were popular tools, used by 20% of the faculty members, while nearly 80% used videos from sites like You Tube. Using SMT for institutional promotion or classroom enhancement is one thing, but it appears that very few institutions of higher education have taken on the challenge of actually preparing students to use SMT critically. In fact, when they do create a meaningful curriculum, it makes news in the leading business magazines, such as Forbes and Fortune. As recently as August, 2013, Forbes ran an article titled, “Can you actually teach a millennial to do social media?” In 2012, Fortune Magazine carried the article, “Universities are Failing at teaching Social Media Skills.” In both articles, the authors noted that only a few schools in North America give credit for courses in Social Media. Among them are The Harvard Business School, Columbia Business School, Syracuse University, and The University of Colorado. (Clark 2013, Holmes 2012)

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Why Are So Few Schools and So Few Professors Teaching Applied Social Media Strategy and Tactics? One reason may be that it is often difficult to initiate changes to any long-standing curriculum According to Forbes writer, Mark Fidelman, who developed a report in 2012, Many graduate programs aren’t even trying {to change the curriculum} – perhaps because of ossified course approval processes, which often take years to get new material into the curriculum, and perhaps because most millennials are already far more conversant with the technologies than their professors.” (Clark, 2013) Universities are just not equipped to make quick adjustments to fast-moving trends in demand. How long does it take to get a single course approved at the average university? In most cases, it requires at least a year of development, proposals, committee reviews, etc. Now, imagine how long it would take to institute an entirely new curriculum or major! And, contrast this with the speed-of-light changes occurring in the workplace right now. Many professors and institutions are daunted by the “moving target” of Social Media techniques and tactics.

Why Should We Teach Social Media Strategies and Tactics? Of course, before making changes to a curriculum, or even to teaching practices, it is certainly worth evaluating the reasons why teaching these tools and strategies are important. In short, the answer – especially for professors like us – is that the companies that hire our students are desperately seeking these skills in new hires. A 2012 study showed that job listings that sought candidates with these skills rose by 87% over 2011. (Lombardi, 2012) Figure 1 shows the four-year growth in SMT skills demanded by potential employers. Does anyone imagine that the trend has not continued? An overwhelming majority of Fortune 500 companies have comprehensive Social Media presences. (Holmes, 2012) And, at a more micro level, almost all of the companies that recruit our students are interested in finding someone to help them with their Social Media tools.


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Abby Lombardi, Hiring for Social Media Skills Begins 2012 with New Highs, Wanted Analytics, February 16, 2012.

Figure 1. Hiring for social media skills graph. Each of the authors in this article has personal experience with these phenomena. We all receive calls each semester, from restaurants, hotels, tourist attractions, sports venues, and caterers, asking us if we have a student who could, “help me out with my Facebook Page” (or some other Social Media Tool). In fact, several of our students have been hired specifically because they understand SMT. And, on at least two occasions within the last year, students were able to sell the mobile phone apps they developed to the restaurants they chose for their project case studies. In fact, we show our students how they can begin making money with SMT even before the semester is over! There is no question that there is a strong and growing demand for talented employees. Of course, the employers also want the other skills we teach our students – leadership, accounting, cost control, etc. But, students with Social Media skills may be holding a strong Trump Card when it comes to obtaining a job in a tough economy.

One More Advantage That Students Have with SMT Employers expect that young people can handle complex, even highly strategic Social Media tasks. The truth is, of course, that our students cannot do this in most cases. But, “perception is reality” and if the employers believe that young people can naturally handle their Social Media campaigns, these employers will hire them quickly. Traditionally, age and inexperience have been disadvantages for our students. This is especially true in a labor market where recent graduates are competing with more mature job-seekers. When conducting interviews for an assistant manager (entry level) position, employers may often find that the person sitting across the table from them in the interview has years of experience, and is only seeking this job because he/she has been out of work due to cutbacks. The older prospect’s age and experience may be seen as a positive advantage over hiring an untested recent graduate.


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However, that same employer, when seeking someone to help with the Social Media campaigns, may be more likely to consider a younger, fresher candidate. Now, if this student/graduate actually does know how to make money and create a solid ROI with Social Media, and can demonstrate that she/he has actually conducted campaigns and understands the real power of this media, then this is a sustainable competitive advantage, and it is exactly what we should be trying to give our students.

The Big Question: “Don’t Students Already Know How to Use SMT?” The answer is not as simple as it would first appear. On the one hand, we can say, “Yes” – our students were raised on Social Media. They don’t talk anymore, they text. Many of them post almost every event, every thought, on Social Media. They Tweet, text, upload, Pin and Post. (They used to email, but that is dying off for this generation.) Our students, just like yours, are connected 24/7, and they will stay connected for the foreseeable future. However, almost none of them know how to use SMT strategically or tactically. They cannot, for instance, use SMT to make money – either for themselves or for an employer. (As the Forbes author put it, “Implicit in this is the fact that millennials don’t have an innate ability to use social media strategically, and just because they can launch a Facebook page blindfolded or create Vine videos in their sleep doesn’t mean they understand business ROI. What tools should they be using? What will advance the interests of their company? What will resonate most with their target audience?” (Clark, 2013) At Syracuse University’s S. I. Newhouse School of Public Communications, Professor William Ward states that, while his students are “social natives” – having grown up with all the common tools like Facebook and Twitter, he must create courses that “elevate social networking to cold, hard science, with an emphasis on practical business applications and measuring return on investment.” (Holmes, 2012) Of course, the fact that students don’t know how to turn Social Media Tools into business opportunities and returns shouldn’t be surprising. Almost none of the restaurant and hotel operators we speak to know how to make money with Social Media either. And, how many professors have successfully run Social Media campaigns? It turns out that knowing the tools is not enough to create a master SMT leader for businesses. Instead, students, and practitioners for that matter, must learn to apply oldfashioned marketing and communication tactics to a new set of principles and priorities. Social Media Tools are just that – tools. They aren’t the answer to marketing problems, Understanding markets, products, pricing and communication are still the strategic and


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tactical imperatives. Using SMT just makes it easier and faster, and in many cases, more effective.

Don’t Wait for Your College to Catch Up It is clear that there are opportunities for our students if they learn to use SMT to create profitable relationships with customers. Simply put: these students will get hired, and probably will be the last to get fired. (Businesses are not going to lay off the assistant manager who is the only one who knows the passwords to all the Social Media accounts!) But, as professors – especially professors in a fast-paced, highly focused business industry such as ours – we cannot wait for sweeping curricular changes at our schools, instead, we should be using and teaching SMT in the majority of our classes. The goal should be to create a student/graduate who can immediately establish a sustainable competitive advantage in the job market. For professors who may feel powerless to affect major changes in the curriculum, there is some very good news. We can use project-based instruction (PBI) to swiftly elevate students’ knowledge and skills in the SMT area. By integrating PBI tactics into our classes, we can leverage the students’ natural affinity for SMT, and give them a solidly competitive skill. And, we can do all this without having to wait for a series of committee meetings and faculty votes. Once a professor makes the decision to begin teaching SMT strategies and tactics, it is quite easy to integrate the projects into almost any business classroom. Certainly, marketing classes are a natural fit, but professors can use SMT education in accounting and cost control (students can create apps that track inventory, and share that information company wide), event planning (apps, Facebook, Twitter, and Pinterest are all appropriate) Human Resources (apps again, Facebook for sure! Tweeting and Pinning). Almost any class in Hospitality, Leisure, Sports and Tourism can support a Social Media project. For those of you who are teaching Marketing, or a related subject, we have included a step-by-step guide for a proven SMT project. But, even if you are not teaching marketing, it should be easy to convert the project we describe in this article to fit your specific course needs. For example it is still possible and practical to use the free Social Media Tools that we include later in the article, for your particular needs.


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A HOSPITALITY MARKETING PROJECT USING FREE SOCIAL MEDIA TOOLS In the following pages, hospitality educators can learn how to use a fully designed project outline to teach cutting-edge marketing strategies and tactics to their students. The project utilizes 4 free, Social Media marketing tools, such as Facebook, Text Marketing, and Mobile App’s. The technology is straightforward, and relatively easy to master. Of course, many professors will ask the question, “How can I teach Social Media tactics to students who know much more about it than I do?” The authors had the same misgiving. But, they quickly discovered that the students had almost no idea about how to utilize Social Media for commercial purposes. Yes, the students use Facebook, texting, email and other media daily, but those tools are only a small part of the project. The more important elements are the Marketing principles that drive all business communications. Customers are not “friends.” Customers still need to be convinced, rewarded, cultivated and sold – and students need professors to show them how to use online tools to create profitable relationships – not just friendly chatter. One of the most glaring examples of the gap between casual, friendly communication, and highly-targeted, customer-oriented marketing communications, is “list building.” Students build lists of friends by “accepting” them. Businesses build lists of potential customers by “selling” them. Throughout this project outline, the authors will repeatedly show educators how to build teachable marketing moments (that teach students to think like business people. Finally, the authors reveal how to get top-level tools absolutely free. . Students can create web pages, online and mobile coupons, text marketing campaigns, email broadcasts, and even mobile phone apps at no cost. Yet, the end results can be of such high quality that Hospitality businesses will actually pay for the creations. For those professors who want to modernize their courses, with cutting-edge lessons that will capture student interest, and produce a more sophisticated Hospitality graduate, this step-by-step project outline will prove invaluable. For best results, follow the example of the authors, and build the project slowly – over several semesters.

Project Overview This is a semester-long, group project. Students need time to learn all of the tools, and the marketing principles that make them useful. Professors need time to teach


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marketing – AND show students how the marketing objectives of a company can be realized through Social Media. The steps in the project are: 1. Introduce the topic –Show students how they have all been involved in this type of marketing – as a customer. Ask how many students have recommended a place, a book, or a movie, through Social Media. 2. Create the groups – Allow students to create their own groups, of 5 or 6. 3. Set Project parameters – a. Students create, or select, an appropriate Hospitality business b. Each student must be able to demonstrate proficiency in Facebook, Mail Chimp, Fan Minder, Landing Page designs, Graphics Creation, and Phone App design. c. Each group will conduct a campaign, present the findings, and make recommendations. 4. Teach the Tools – All of the tools that we recommend have very robust training videos. Ask the students to take the training, and then ask some of them to present their first attempts in class. Everyone will learn from this – including instructors. 5. Set simple objectives –It is important, for the purposes of this project, that the students focus on one campaign– a concert, Happy Hour, off-season promotion, etc. 6. Guide the students in selecting a target market – email, social media, and text campaigns are highly focused. In order for them to be successful, the students need to concentrate on a small segment. 7. Build the list – Students will have almost NO idea about creating landing pages with meaningful, trigger words. Both Mail Chimp and FanMinder are excellent tools for this. Spend some time here, it will pay off. 8. Send out campaign messages – Here is where the students email, text, or post messages to the target market. 9. Analyze – all of the tools we provide have analytical functions. Students should learn how to determine how many messages got through, how many were opened, and how many actions the recipients took. 10. Write Paper and Present – If professors give students a good outline, the paper will almost write itself. Require students to use professional tools to make the presentations.


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At the end of the semester, the students present their projects. This includes an overview of the company they chose or created, screenshots of landing pages, emails, apps, and other material, a summary of the campaign objectives, and finally, their analysis of the results. We encourage the students to use high – quality presentation tools. The results have been impressive. And, faculty evaluations reflect the students’ feelings of pride and accomplishment.

The Project Tools Here is a list of the communication and graphic tools that we utilize in this project. (Special note: At the time of this writing all of the tools listed below were free, or had free versions. However, before utilizing them for a student project, professors should make sure that the companies have not changed their policies.) 1. Facebook –Facebook is the world's largest social media tool. We show the students how to create “fan pages. “ 2. Email marketing system –Use a tool called mail chimp (mailchimp.com) The FREE tool provides everything necessary to gather, store, manage and market to email addresses. Mail chimp has a complete set of tutorial videos. . 3. Graphics design software –there are several free software packages that allow students to create very nice graphic images. They will need these graphic images for Facebook fan pages, landing pages, and for some of the mobile marketing coupons. We recommend laughing Bird software, or Pixlr. 4. Mobile phone marketing –In the U.S. we use Fan Minder. If this system is not available in your country, utilize a simple “text group” to attract, capture, and text to groups. Fan Minder is particularly good, because the pre-formatted coupons are easy to use. Fan Minder does have an email function, so non-U.S. students can still utilize the coupons. 5. Phone Apps – Use Magmito (magmito.com) to create FREE apps that work on both iPhone and Android phones. While the list of tools above may seem daunting, professors should remember that all of these tools come complete with instructional videos.


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Understanding List-Building Fundamentals All of the tools described above depend on one thing for success – the hospitality business must have a list of contacts. We found our lessons on list building to be crucial to the project. Again, it reinforces the need for a professor’s knowledge, because students have never built lists of customers. Here are several things to consider when teaching students how to build lists: 1. A list is a group of names, addresses, phone numbers, etc. 2. This list must be stored someplace, and that someplace must make it easy to communicate with the list. 3. In order to gather the information, the business needs a place where people can sign up. These are called opt-in pages, landing pages, or squeeze pages. Figure #1 is a good example of a student-generated Landing Page from the project. 4. It is difficult to get people to sign up on an opt-in page, because they know they are now giving the marketers permission to contact them through email or mobile phones. 5. In order to overcome the reluctance, marketers need to come up with an incentive for the prospects, and then communicate that incentive. 6. A list has value only if the people on the list respond to marketing stimuli.

Figure 2. A student-created landing page.


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Getting people on to the list, marketing to them, and motivating them to take action, are the really important steps of this project. Openness and honesty are key ingredients. If you are trying to hide something, it can cost you potential customers (Quain, Scales, and Albano, 2012). The rest of the work – setting up the programs and tools, is merely technical. Because this is such a critical function, the authors will define some teachable marketing points for the readers of this article.

Teachable Moments in Marketing Professors should be looking for those special, teachable moments – the moment when a student realizes that he/she needs more knowledge. It is what makes teaching at the university level so rewarding. To this end, consider the following teachable moments for this project (specifically centered on the list-building function) and use them to improve the impact and effectiveness of this project. 1.

2.

Designing the opt-in form (What information do we need and want?) – There are three things to consider: a. How do we want to communicate to these people? If the business plans to use email, they need to capture an email address. If they want to communicate via text messages, capture cell phone numbers. b. How much information is too much? Is an email or cell phone number enough? Do you need their full name, or just a first name? c. How do I get that information to my list management system? And, how do I keep it straight once it is there? The list management functions in both FanMinder and Mail Chimp allow users to create groups of names. This can be very helpful later, when creating highly targeted messages. d. Form Design. Actually making the form is not the challenge. Designing the form is the challenge. Help students use “trigger” words and offers. How do we actually create the opt-in form? There are two variations of opt-in forms, and both are easy to create. a. Email – Use the opt-in form creator in Mail Chimp. Mail Chimp hosts the opt-in form as a separate web page. When prospects go


3.

4.

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to the webpage, they fill out the form, and the information goes directly into the specified group on your Mail Chimp account. See an example of an opt-in form created by one student group in Figure 1. b. Text message marketing forms – Using FanMinder, it is even easier to create an opt-in form. Just set up a keyword, and then ask prospects to send a text message to a short number called a “short code.” For example, one student group used the keyword “Coyote” for their restaurant, the Coyote Café. The short code was the five-digit number supplied by FanMinder. What incentives are necessary in order to get the customer/prospect to fill out the form with the correct information? Consider the two factors below when developing incentives, and the language to convey their benefits: a. Incentives should be problem-driven. Customers and prospects have problems – that is why they are coming to your business in the first place! What are the problems that are specific to this target market? What can you do about the problems that would give the customers the right incentive to sign up for the list? b. Using trigger words is often difficult, because most people do not think in those terms. Yet, the more instinctive and basic the triggers, the more motivating they are. For example, one student group, working with a golf club, recognized a unique problem for members – if they invited non-member friends to play a round of golf with them, they often ended up paying the green’s fees for the friend, because the bill wouldn’t come due until the next month’s payment. The group also realized that the member’s friends were excellent prospects for membership, so they ran an opt-in page that said, “Are you tired of paying for your cheap friends to play at YOUR course? Sign up for last-minute discounts at the Pro Shop, and get two FREE companion passes for your next round of golf.” The Trigger words in this sentence are “Free,” Cheap Friends” and Discounts.” Designing and Creating an Autoresponder – An Autoresponder is an automatic message that goes out to the customer/prospect IMMEDIATELY after he/she signs up via an opt-in form. Mail Chimp and FanMinder allow students to create Autoresponder. There are two important things to consider when developing an Autoresponder:


a. b.

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Make the person glad that he/she filled out the opt-in form! Welcome them, and give them something special immediately. Consider using the opt-in form to promote an upsell.

Targeting the Right Prospects In order to fully utilize the tools and programs in their Social Media and Mobile toolbox, the students had to spend time identifying the target markets they wanted to motivate. This was an interesting experience for the authors to watch, because the students had never thought about targeting before – at least not when it came to business communication. However, we showed the students how they use targeting in their personal lives. They had separate groups and lists for their close friends, larger circle of friends, school groups, business lists, etc. When they realized how important it was to communicate with each group in specific tones, they began to understand how to select targets for their project’s Social Media Campaigns. In all the projects, students were required to describe the primary markets. This included some behavioral aspects (psychographics) as well as descriptive (demographics) criteria. See the notes in Figure 2 for a sample of a target market description by one group.

Since we are located on South Ocean Blvd in Palm Beach, FL we are targeting the range of mid to upper class adults with ages ranging from Late 20’s to Early 40’s. This class of customers will focus more on experiences and less on price. We don’t do it for a good value on food and drink prices. Figure 3. Students’ target market.

Setting Objectives – Decide in Advance What Makes You Successful Students are not naturally disposed towards setting objectives. Yet, it is impossible to determine if a marketing campaign is successful if there are no objectives set in advance. We required each group to establish specific objectives for their campaigns, and then use built-in measurement tools to determine success.


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Measuring Results All of the tools we employ have built-in measurements. For example, Mail Chimp’s back office provides the following: a. Number of people filling out opt-in forms b. Number of people who completed the double opt-in process c. Emails sent d. Bounce backs e. Opens f. Responses . Fan Minder has a unique way to measure success. Their coupons contain a “Redeem” button that tracks when a coupon is redeemed, and by whom. This is a significant measure of success.

Marketing Integration – One Theme, Many Touches After choosing target markets, and setting objectives, the students could then integrate their tool boxes to carry out the campaign. Again, this was a paradigm shift for many of them. They had never coordinated a multi-tool campaign. The students learned the importance of creating a single, branded image and theme. And, they learned the importance of timing, as different tools required different schedules. For example it was necessary to create op-in forms, and a sales campaign to attract prospects to those forms, BEFORE sending out emails and text messages. In addition, they realized that the scheduling of Facebook posts, or Tweets, needed to coincide with the initial stages of the campaign, while coupons, invitations to events, and other promotions came later – after the guests had registered for the lists, and had sorted through the Autoresponder. Students used graphic tools such as Laughing Bird and Pixlr to create themed, integrated designs. They uploaded images to Facebook, FanMinder, and Mail Chimp. Figure 3 for an example of student-created images on a Facebook Fan Page.


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Figure 4. A Facebook fan page created by a student group. The result of this integrated approach was to create a multiple number of “touches” for each client, and to give them more opportunities to respond. Some of the tools, such as FanMinder, can also be set to automatically post any coupon offer on Facebook and Twitter. This required some account integration in order to accomplish the multiple posts with one click, but the students soon learned the value of the integration and coordination.


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Figure 5. A customized, redeemable coupon created in Fan Minder.

Figure 6. A mobile phone app developed by students using Magmito.

SUMMARY, CONCLUSION, AND RECOMMENDATIONS There is no doubt that ALL hospitality businesses need talented employees especially if those talented employees also understand the business implications of Social Media Tools. Understanding how to conduct successful campaigns is definitely a


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competitive advantage for new graduates. In our experience, this knowledge also creates significant shifts in employers’ perceptions long before the students graduate. In fact, most companies are eager to hire young executives who can “work the magic” of Social Media. In a drastically reduced hiring environment, most schools are eager to add competitive edges for their students, but at the same time, the fast-paced nature of technological change makes it difficult to even begin to contemplate curricular changes. For that reason, faculty should learn to implement Social Media teaching methods into easy-to-adjust projects. The outline provided above should be sufficient for most faculty members to get started at least. Do we have any doubt that teaching Social Media tactics and strategies are good for students who need employment? We have no doubt. In our experience, businesses don’t want to wait for employees to graduate! They will hire them right now. And, even if the student is not ready to jump full time into the workforce, the ability to practically use Social Media Tools to improve ROI for a Hospitality Business can certainly lead to interesting internships that provide incentives and rewards for both the student and the employer. Finally, we would like to recommend that Hospitality HR departments create training schedules for their employees in Social Media Tools. This could be instituted company wide, as almost every department can utilize SMT. Imagine the power of unleashing a large number of SMT specialists and professionals throughout your organization. If HR departments follow our lead, and deploy project-based SMT training, the result could be a more customer-needs-aware company, at all levels. Remember, the basic rule for creating successful social networks is that everyone in the network benefits. In a service-driven industry such as ours, benefits that are customized for target market groups (internally and externally) are the currency that drives success. In the present, and certainly in the future, understanding and implementing Social Media campaigns will generate competitive advantages – for everyone in our business. Use the project outline in this article, (at schools or in corporations) and begin to leverage the power of Social Media today


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REFERENCES A study of trends in higher-education faculty's social media site usage for personal, professional, and instructional purposes.” Pearson Publications, 2012 (A Special Report found on the Pearson Blog at http://dev.pearsonlearningsolutions.com/higher-education/social-mediasurvey.php) Clark, D. (2013). Can You Actually Teach a Millennial to do Social Media? Forbes Magazine: Leadership. Aug. 6, 2013. Davis, C.H.F., Deil-Amen, R. J., Rios-Aguilar, C., & Gonzalez Canche, M.S., (2012). Social media and higher education: A literature review and research directions. Report printed by the University of Arizona and Claremont Graduate University. “Educational Resource Review” compiled by the Editor, Journal of Hospitality, Leisure Sport and Tourism Education, vol. 10, Issue 1, 2011 Holmes, R., (2012). Universities are failing at teaching social media. Fortune Magazine Leung, D., Law, R., van Hoof, H., and Buhalis, D. (2013) Social Media in Tourism and Hospitality: A Literature Review, Journal of Travel & Tourism Marketing, 30:12, 3-22 Lombardi, A., (2012). Hiring for Social Media Skills Begins 2012 with New Highs, Wanted Analytics. Quain, B., Scales, M., and Albano, D. (2012). An Interactive Student Project Using the Internet, the 80/20 Rule, and Social Media to Analyze Customer Feedback. Journal of Hospitality and Tourism Education. 24:2-3, 56-66


Ben and Jerry’s: How To Benefit From Being a B Corp XANSHUNTA L. POLK School of Business Lincoln Memorial University It is often difficult for most organizations to successfully revitalize their strategies, methods, and policies. Even the best designed organizational changes can fail at meeting objectives during implementation due to unexpected or unaddressed organizational changes (Bowe, Lahey, Kegan, and Armstrong, 2003). Such is the case for Ben and Jerry’s Homemade, Inc. Due to resistance from stockholders and industry leaders Ben and Jerry’s must alter their strategies to focus more on social, environmental, and internal matters. Specifically, the ice cream maker is faced with the task of adjusting their corporate social responsibility strategy in an attempt to combine current strategies with new Benefit Corporation mandates. This research served to examine the relationship between corporate social responsibility, Benefit Corporation mandates, and traditional management strategies. The methodology included a case study of industry factors, as well as, current Ben and Jerry’s corporate social responsibility strategies. Understanding these relationships allows Ben and Jerry’s to successfully integrate strategies to support the environment, while boosting employee, community, and stockholder morale, and increase company revenues. KEYWORDS Corporate social responsibility, CSR, Benefit corporation, B Corp, Social responsibility, Management strategies, Ben and Jerry’s

Address correspondence to Xanshunta Polk, BBA, School of Business at Lincoln Memorial University, (423) 869-7006, [email protected].

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INTRODUCTION Company History In 1978 Ben Cohen and Jerry Greenfield opened the first Ben and Jerry’s Homemade ice cream scoop shop in a renovated gas station in downtown Burlington, Vermont (Our History, n.d.). Since that time the company has successfully increased sales every year since foundation (Dennis, Neck, and Goldsby, 1998). In contrast to most corporations, the leaders at Ben and Jerry’s want more out their company than just profits. Cohen and Greenfield concentrate on promoting their agenda of “caring capitalism” (Neuborne, 1999). Caring capitalism occurs when corporations consider effects on the community alongside products and profits (Neuborne, 1999). Cohen and Greenfield believe that corporate objectives should not interfere with social action (W.O., 1995). Consequently, Ben and Jerry’s have merged social values with profits in its bottom line (W.O., 1995). Ben Cohen believes, “Society should measure its strength not in terms of how many people it can kill but in terms of how many people it can feed, clothe, house, and care for” (W.O., 1995, p. 27). Ben and Jerry’s evaluate its success by how much it gives back to the community (Flannery, 2000). Ben and Jerry’s social impact originates from how it conducts business and how they are able to combine marketing of products and social concerns (Flannery, 2000.) The ice cream maker’s effective implementation of corporate social responsibility has made them an industry model for engaging in socially responsible behavior (Poltenson, 1996).

Mission Ben and Jerry’s employs a mission comprising of three interrelated parts: Product, Economic, and Social. Essential to the mission is the belief that all three parts must flourish equally in a way that commands deep respect for individuals in and outside the company and supports the communities of which they are a part (Our Mission Statement, n.d.). According to Cohen and Greenfield, We have a progressive, nonpartisan social mission that seeks to meet human needs and eliminate injustices in our local, national and international communities by integrating these concerns into our day-to-day business activities. Our focus is on children and families, the environment and sustainable agriculture on family farms (Our Mission Statement, n.d.).

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Problem Definition In 2012 Ben and Jerry’s was designated as an official B-Corporation (Van Brussel, 2012). The designation allows Ben and Jerry’s to measure and benchmark the social impact of the company (Van Brussel, 2012). Additionally, the B-Corporation touts to consumers, investors, and employees that the company is serious about its social mission. The B-Corporation is a new sector which develops economic opportunity, builds strong communities, and conserves healthy environments (Gilbert and Garrigle, 2013). According to Gilbert and Garrigle (2013), “B-Corps meet higher standards of accountability, transparency, and social and environmental performance.” Ben and Jerry’s addition to the rank of B-Corporation is seen by many as a groundbreaking movement, because the designation shows that investors are focused on social benefits, in addition to profits and growth (Van Brussel, 2012). The issue for Ben and Jerry’s is that although B-Corporation designation professes a superior focus on the social environment, many marketers and activists are cynical about the advantages of being a B-Corporation (Tozzi, 2010). Many don’t see the differences between corporate social responsibility (CSR) and being a B-Corporation. Moving forward the challenge for the Ben and Jerry’s is to effectively meld their current CSR efforts with new B-Corporation duties. The future of the ice cream industry, as well as, all industries may depend on Ben and Jerry’s successful formulation and implementation of new sustainability tactics.

BACKGROUND Ice Cream Industry Despite being a delicious treat, the ice cream industry in the United States is on a decline (Carper, 2012). Reports show that Americans are buying less ice cream (Carper, 2012). Symphony IRI, a market research firm, found that by the end of August 2012, unit sales of ice cream fell 2.3% to 1.13 billion units (Carper, 2012). Historically, ice cream is a food with little brand loyalty, in which sales are driven by price (Carper, 2012). Ice cream is a fun food that must compete with others in the desert category (cakes, pies, and other deserts). Studies indicate that when consumers purchase ice cream 94% base their decision on flavor, 83% view price, and 72% are based on a sale or promotion (Carper, 2012). Only two-thirds (68%) make their ice cream purchase decisions based on brand loyalty (Carper, 2012).

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Ben and Jerry’s is attempting to develop more brand loyalty through new product development, new flavor profiles, healthier options, new packaging concepts, and environmentally and socially conscious operation (Carper, 2012; Our Mission Statement, n.d.). Ben and Jerry’s is combining corporate social responsibility and the benefit corporation initiatives to drive business and help society.

Corporate Social Responsibility The world is full of corporations that have multiple crusades for and against different social causes. Many have found it difficult to determine the dividing line between their obligations to their stockholders and stakeholders. Specifically, corporations have found it difficult to define their social responsibilities. Numerous corporations believe that society allows American companies to focus on profit because the result is a higher living standard and a more efficient use of economic resources (Poltenson, 1996). In order for corporations to reduce the difficulties, it is necessary for them to realize the interrelatedness between business and society. The perception that business and society are interrelated comes from the idea that strength of competition produces moral legitimacy of corporate behavior (Van de Ven and Jeurissen, 2005). Researchers propose that competitive conditions are key variables, which influence the relationship between social responsibility and business success (Van de Ven and Jeurissen, 2005). Currently, corporations have begun reconsidering the main function of business, which is to produce goods and service, while bringing in profits for shareholders, and are now considering the idea of adding social responsibility to their bottom line (Flannery, 2000). Corporate Social Responsibility (CSR) focuses on the triple bottom line, the environmental, social, and financial accomplishments of a company. The goal for CSR is to positively impact society, while simultaneously achieving business success. (What is CSR?, n.d). An organization is considered a good corporate citizen when it exhibits a commitment to its stakeholders by operating in a socially responsible manner. CSR is based on three interconnected models: corporate values and business practices, marketing strategies, and product or services (Flannery, 2000). The three models of CSR ascertain how a corporation should interpret, build and mold its social identity, and link social responsibility to its core functions. Another view of CSR suggests that corporate responsibility and corporate reputation go hand-in-hand. The notion is that both directly affect consumers and

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communities (Hillenbrand and Money, 2007). According to Hillenbrand and Money (2007), Corporate reputation and corporate responsibility are both expressed through similar and overlapping corporate behaviors and understood in terms of similar and overlapping stakeholder perceptions. By viewing reputation and responsibility as two separate concepts, they are more so thought of as one in the same (p. 273-274). The belief is that corporations should manage their reputations while being mindful of their relationships with stakeholders, because corporations and stakeholders influence each other.

B Corporation The benefit corporation (B-Corp) is an organizational form devoted to legitimizing the objective of CSR (Andre’, 2012). B-Corp is a new initiative that combines traditional profit generation with strong social and environmental agendas (Raskin, 2012). B-Corp legislation has passed in seven states, making New York, Maryland, Vermont, New Jersey, California, Virginia, and Hawaii prime locations to promote community-based businesses (Raskin, 2012). The purpose of legislation is to improve CSR by providing legal protection to corporations that want to maximize shareholder income as pursue social or environmental agendas (Andre’, 2012). Additionally, legislation allows corporations to refuse offers it deems ethically undesirable (Andre’, 2012). B-Corp designation promotes socially minded efforts that strengthen and diversify a company’s economics while safeguarding consumers, helping the environment, and supporting the rights of working men and women (Raskin, 2012). B-Corps fall within the category of gray sector organizations (GSO) (Andre’, 2012). GSOs are organizations that are not entirely public or private, but which have characteristics of both sectors. GSOs, specifically, B-Corps typically have multiple missions (Andre’, 2012). In addition to the mission of all corporations to make profits, BCorps each have multiple missions that align with enhancing CSR. B-Corps have a range of missions from improving human health to the achievement of other benefits for society or the environment (Andre’, 2012). The broad range of B-Corp missions requires these corporations to deal with more complexity and uncertainty than other organizations. B-Corp designation is aided by the efforts of B-Lab. B-Lab is a non-profit organization whose purpose is to grow the gray sector of the economy. Their objective is to harness the power of business to resolve social and environmental problems (Gilbert and Garrigle, 2013). Additionally, B-Lab hopes to help B-Corps become legally recognized by more states and to have tax preferences with the IRS (Gilbert and Garrigle,

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2013). In order to be designated as a B-Corp, companies must adhere to a 140 point analysis, including governance, transparency, charitable giving, and impacts on the environment and community (Sampselle, 2013). B-Lab then synthesizes the analysis into a score. The score is weighted based on business size and industry. The score is further broken down into three focus areas: employees, the environment, and the community (Sampselle, 2013). Additionally, an investigation is conducted to evaluate consumers’ potential buying decisions, investing, and employment opportunities (Sampselle, 2013).

Ben and Jerry’s Strategy Determining an organization’s strategy involves defining their long-term position in the marketplace (Seddon and Lewis, 2003). It also requires identifying the trade-offs that the organization will and will not do to provide value to their customers (Seddon and Lewis, 2003). Additionally, strategy involves developing competitive advantages to deliver customer value, while making a superior return on investment (Seddon and Lewis, 2003). Ben and Jerry’s has developed many strategies as a means of being competitive, while simultaneously being conscious of their stakeholders. One of Ben and Jerry’s strategies is the practice of “caring capitalism” and extending CSR to their employees. The ice cream maker pays close attention to the care of their employees. For example, the lowest paid employee receives a salary plus benefits of $22,000 in a state with an average per capita income of $17,436 (Dennis, Neck, and Goldsby, 1998). The company also believes it’s important to establish a good environment for their workers. In an attempt to create a positive workplace, Ben and Jerry’s began the Joy Luck Gang, a volunteer group whose sole missions is the persistent pursuit of joy in the workplace (Dennis, Neck, and Goldsby, 1998). The group sponsors activities designed to improve morale, such as clash-dressing day and hiring DJs to take requests while workers are on the production line (Dennis, Neck, and Goldsby, 1998). The company has also committed to help their employees with more job training. Ben and Jerry’s developed the PartnerShop Program, which helps nonprofits open and operate Ben and Jerry’s franchises dedicated to employing at-risk youth (Yamada, 2003). Eight nonprofits organizations operate 13 PartnerShop franchises nationwide (Yamada, 2003). The PartnerShops are staffed by young people (usually ages 15 to 25) from poverty, homelessness, mental illness, or juvenile delinquency backgrounds (Yamada, 2003). The nonprofits offer youth support programs such as job training, entrepreneurial skills, and classes on anything from resume writing to business basics (Yamada, 2003).

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CSR is also practiced in terms of start-up costs. Ben and Jerry’s waives its standard onetime $30,000.00 franchise fee for nonprofit owners. The company also provides nonprofits with management training, special marketing support, and travel stipends for twice-a-year Ben Jerry’s corporate meetings (Yamada, 2003). In addition, The PartnerShops train about 30 people each winter, and at the end of the year, they encourage turnover, by helping employees find paying jobs at other companies (Yamada, 2003). The hope is that the employees will benefit from a leg-up to bigger and better things (Stephens, 2003). Another strategy for Ben and Jerry’s is to produce their products in environmentally and animal friendly ways. After months of discussion with the Humane Society of the United States (HSUS), Ben and Jerry’s confirmed that it would adopt an exclusively cage-free egg policy for the eggs it uses in its ice cream (Campaign victory, 2006). The HSUS highly praised the company’s decision, estimating that it would improve the welfare of tens of thousands of animals (Campaign victory, 2006). Ben and Jerry’s has also been very staunch opponents of Bovine Growth Hormone (rBGH). The company asserts that the hormone is unhealthy for cows, affects the nutritional value of milk in a negative way, causes milk to go sour before its time, is not necessary due to an abundance of milk, and threatens the survival of family farms (Dennis, Neck, and Goldsby, 1998). In 1995, the company went over and beyond, and paid a premium of $345,000 for milk and cream that was rBGH free (Dennis, Neck, and Goldsby, 1998). In addition to extending CSR to employees, and the environment, Ben and Jerry’s also demonstrates responsibility to its consumers. Ben and Jerry’s donates 7.5 percent of pretax profits to charity, while the average publicly held corporation in the United States donates 1 percent (Dennis, Neck, and Goldsby, 1998). The organizations that receive the money include environmental groups, AIDS projects, a center for immigrant rights, American Indians, and the homeless (Dennis, Neck, and Goldsby, 1998). Another strategy for Ben and Jerry’s is to combine marketing with their message (Neuborne, 1999). Their marketing formula incorporates grass-roots social activism and low budget, community focused tactics (Thompson, 2001). While many corporations rely on marketing agencies, Ben and Jerry’s does not, in terms of overall strategic direction (Thompson, 2001). They prefer that their CSR activities do most of the marketing work. One of the ways, they accomplish this is by creating various flavors that contribute to charitable causes. In 1989, Ben and Jerry’s created the flavor Rainforest Crunch, as a way to help spread the word about the preservation of rainforests. The label from the product read “money from these nuts helps to show that rainforests are more profitable when cultivated for traditional harvest then when they are cut and burned for short-term gain”

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(Dennis, Neck, and Goldsby, 1998, p. 389). KaBerry KaBoom!’s package touts a donation of 1.5 percent of sales to children’s playground building organization KaBoom! (Thompson, 2001). Furthermore, Ben and Jerry’s made an effort to reach African American consumers with the launch of Island Paradise and Apple Crumble flavors. The varieties prompt donations to the Tom Joyner Foundation, which provides scholarships for historically black colleges and universities (Thompson, 2001). Regardless of limited media expenditures, Ben and Jerry’s has found that the attention given to its community activities by media outlets, “goes well beyond what our spend could ever be in terms of garnering awareness”, said a Ben and Jerry’s marketing executive (Thompson, 2001) .Ben and Jerry’s ability to mix business and social responsibility has proven to be a great formula for how to increase profits, reputation, and consumer loyalty.

SITUATION ANALYSIS / SWOT ANALYSIS Strengths Established Company/Brand Despite Ben and Jerry’s humble beginning, the ice cream maker has established itself as a top maker of premium ice cream (Hoover’s Inc., 2010). In 2000, the company was bought by consumer products giant Unilever (Hoover’s Inc., 2010). The acquisition has not changed Ben and Jerry’s social activist stance or its quirky personality. Unilever’s leaders promised they would not change Ben and Jerry’s business approach. Instead Unilever has rejuvenated the ice cream maker and has promoted the company’s three part (social, product, and economic) mission. Ben and Jerry’s has been able to maintain its corporate culture an image under the watchful eye of Unilever (Hoover’s Inc., 2010). Variety of Products Not only is Ben and Jerry’s known for its social stance, they are well known for their variety of ice cream product and flavor offerings (Hoover’s Inc., 2010). The company sells creatively named ice cream and ice cream novelties (Hoover’s Inc., 2010). Additionally, in response to health conscious needs, Ben and Jerry’s has launched a line of frozen yogurt products. Ben and Jerry’s carries over 100 product flavors which allow them to meet the meet needs of wants of many consumers (Flavors, n.d.). Moreover, Ben and Jerry’s associates charities and social causes to the majority of their flavors. Each

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year Ben and Jerry’s donates a minimum of $1.1 million pretax profits to social causes, with money generated from product sales (Hoover’s Inc., 2010). International Reach Unilever’s acquisition of Ben and Jerry’s has led to a wider scope for the ice cream maker (Hoover’s Inc., 2010). The company now franchises 750 Ben and Jerry’s Scoop Shops worldwide. Additionally, Unilever struck a deal with Dreyer’s which has expanded the distribution of Ben and Jerry’s products to 24 countries (Hoover’s Inc., 2010).

Weaknesses Public Controversies In 2006, Ben and Jerry’s former CFO, Stuart Wiles, was convicted of embezzling nearly $300,000 from the company (Marketing Research, 2010). Also in 2006, Ben and Jerry’s severed connections with egg supplier, Michael Foods (Marketing Research, 2010). Michael Foods was accused of in-humane treatment of their chickens. Bad public relations from the Humane Society damaged Ben and Jerry’s reputation (Marketing Research, 2010). Neglecting Business/Industry Trends Ben and Jerry’s fervent focus on social responsibility issues may prevent the ice cream maker from staying abreast of changing business and industry. This neglect could potentially cause the company unnecessary costs (Marketing Research, 2010).

Opportunities Social Media Ben and Jerry’s uses social media to engage consumers (Ranjan, 2011). Social media is used by Ben and Jerry’s in various countries and in various languages. The ice cream maker uses the social media to promote new flavors and products, as well as, allow consumers to voice their opinions about the brand (Ranjan, 2011). The use of social

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media has ability to create powerful social media campaigns that skillfully promote the brand, which leads to increases sales and market share. Certified Fair Trade In 2010, Ben and Jerry’s announced its commitment to Fair Trade across its entire global product portfolio (Hoover’s Inc., 2010). By the end of 2013, Ben and Jerry’s converted all their ingredients to Fair Trade certified (Hoover’s Inc., 2010). The Fair Trade crusade promotes criteria for fair labor standards, environmentalism, social policy, fair pricing, and community development (Hoover’s Inc., 2010). This conversion aids farmers and provides a competitive advantage for the ice cream maker. Supply Chain Upon acquisition of Ben and Jerry’s in 2000, Unilever vowed to improve their supply chain (Rudd, 2011). The consumer foods giant implemented a new SAP enterprise resource planning supply chain system. The new system provides Ben and Jerry’s with a real-time view of their goods. The new supply chain system allows for quicker and higher quality information availability, which eases decision making (Rudd, 2011). The new supply chain system has allowed Ben and Jerry’s to cut cost and grow sales. Unilever’s new system is leaner and more cost disciplined. Group sales grew 4.1 percent and operating profit has risen 26 percent (Rudd, 2011). Unilever’ supply chain aligns end-toend global methods which gets Ben and Jerry’s goods to consumers all over the world. Unilever’s new supply chain system leverages eight disciplines: engineering, manufacturing, procurement, logistics, customer service, planning, quality, and safety (Unilever, 2013).

Threats Competitors Ben and Jerry’s has three top competitors: Dean Foods, Dreyer’s, and Dunkin. (Hoover’s Inc., 2010). According to Hoover’s Inc. (2010), gross revenues for competitors are $11,462.28 M, $535.30 M, and $658.18 M respectively. Ben and Jerry’ gross revenues for 2009 were between $200 million and $500 million (Hoover’s Inc., 2010).

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Opponents of Corporate Social Responsibility There are many opponents of CSR that contend that companies who use their profits to promote social issues are not fair to their investors (Hillenbrand and Money, 2007). The idea is that the companies are there to serve an economic purpose and not to specialize in social responsibilities. Opponents also argue that focusing attention on social causes distracts leaders, which hinders the company from maximizing profits (Hillenbrand and Money, 2007).

TECHNOLOGY COMPONENTS Lean and Green Freezers Ben and Jerry’s has introduced an eco-freezer for use in their United States Scoop Shops and manufacturing plants (Ben & Jerry's employs eco-freezer, 2009). According to Ben and Jerry’s CEO, “This is an important step for our business which we hope will clearly demonstrate that a more environmentally friendly refrigeration technology can work in the U.S. market (Ben & Jerry's employs eco-freezer, 2009, p.11).” The freezer is a cleaner, greener, hydrocarbon-based equipment which presents great environmental benefits (Ben & Jerry's employs eco-freezer, 2009). The eco-freezer minimizes Ben and Jerry’s impact on global warming. The new technology allows the ice cream maker to use about 10 percent less electricity, because it is mostly powered by propane and butane.

Waste Management At Ben and Jerry’s very little goes to waste. The creation of ice cream creates dairy waste that is too extreme for a local municipal waste treatment facility. Instead, Ben and Jerry’s transfers its dairy waste to two of their own dairy supplier farms. There the dairy waste is fed into a methane digester, where it generates energy to power the farms (Waste, n.d.). The left over solid waste is turned into bedding for cows. Ben and Jerry’s is passionate about making their waste less wasteful (Waste, n.d.).

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HUMAN COMPONENT Organizational Culture Ben and Jerry’s work environment is laid back and liberal (Lee, 2000). The atmosphere at Ben and Jerry’s is open and welcoming. Ben and Jerry’s has created an atmosphere that caters to young workers. The average Ben and Jerry’s employee is 36 years of age (Lee, 2000). The company takes great effort to attract employees who believe in the ice cream maker’s vision. Their commitment to their employees is reflected in their benefit programs. It includes a comprehensive health plan for domestic partners, health and dependent care flexible spending accounts, unlimited time off for bereavement, financial aid for adoption expenses, and time off to volunteer (Lee, 2000). Additionally, the company offers employees three free pints of ice cream a day. The employees can burn off the calories with the health club memberships offered by Ben and Jerry’s (Lee, 2000). Ben and Jerry’s take good care of their employees. This is evident in the low rate if turnover, which is about 5% (Lee, 2000). According to Carol Hickman, Ben and Jerry’s senior manager of benefits and HRMS, “It’s a different way of working, but the work gets done. Making ice cream is fun, and people have fun doing it (Lee, 2000, p. 65).” Ben and Jerry’s is fun place to work with a serious mission. The company remains true to their credo “great ice cream, big profits and social consciousness (Lee, 2000, p. 65).”

ANALYSIS OF PRESSURE POINTS (RESISTANCE) Business is for Profit Ben and Jerry’s recent B-Corp designation recognizes the company’s growing focus on the social environment. Ben and Jerry’s goal is to combine their CSR efforts with their new B-Corp responsibilities in a way that maximizes their efforts to help all of their stakeholders, communities, and the environment while producing delicious ice cream. Although Ben and Jerry’s mission is noble there are many that do not agree. Opponents of CSR and B-Corps believe companies should obey applicable laws and regulations, and that’s all they should do (Delios, 2010). Opponents do not believe that that Ben and Jerry’s or any company should go beyond what the law requires in regards to worker safety and the environment (Delios, 2010). Their belief is that a company’s only responsibility is to make profits. Ahlstrom (2010) supports the idea that a company’s sole task is to provide jobs for their employees. Ahlstrom’s belief stems from

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classic management literature. For example, in the early 20 th century Barnard (1938) and Williamson (1975) implied that companies cannot efficiently perform functions other than those required by market-mediated transactions between companies. “Hence, the relationship between employees and organization should be entirely transactional and nothing more (Williamson, 1975).”

Social Responsibility is Expensive Another issue of concern for CSR and B-Corp opponents is cost. Socially oriented initiatives lead to increased costs. The issue is whether these costs can be offset by organizational improvements or whether the costs endanger the company’s competitiveness (Delios, 2010). Even when opponents note the moral and ethical legitimacy of CSR, their focus remains the on the costs of such endeavors. Despite social efforts, there is not always a financial return on investments which is unacceptable to many CEOs (Schendler, 2002). For many CEOs the bottom line is that company mandates should spring from economics not ethics (Schendler, 2002).

OVERCOMING RESISTANCE Trade-off Between CSR and Profits Much of the opposition to CSR and B-Corp efforts stems from the perception that CSR involves a zero-sum trade-off with economic interests (Burke and Logsdon, 1996). However, a key to overcoming this resistance is to promote the more contemporary notion that while CSR may involve short-term costs, CSR initiatives pay-off for a company in the long run. Scholars agree that companies who utilize CSR initiatives benefit from greater social legitimacy with less government regulations (Burke and Logsdon, 1996). Additionally, scholars have found that promoting a better society is good for long-term profitability (Burke and Logsdon, 1996).

Strategic Corporate Social Responsibility Perhaps the best way to overcome resistance to CSR and B-Corp designation is to highlight the benefits of strategically using CSR to contribute to the long-term effectiveness of business activities. By specifying the benefits of CSR, remaining proactive, promoting voluntarism, and creating better visibility contributes to the value creation of CSR and B Corp program (Burke and Logsdon, 1996). The ultimate idea of

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using CSR and B-Corp designation strategically is to add value to your company. Companies attempt to create value through their on-going investments, new technology, new products, brand awareness, training and customer service, and production facilities (Burke and Logsdon, 1996). These components can be integrated with CSR objectives to create evident benefits to a company. Recognizing that long-term investments in CSR will yield high total payoffs for stakeholders allows companies to focus on economics and ethics. This dual focus allows companies to thrive economically and socially, while strategically adding value to their company.

RECOMMENDATIONS Leveraging the integration of Ben and Jerry’s CSR and B-Corp responsibilities will greatly maximize the company’s social and business value, which will result in increased profits. The key is to develop stronger stakeholder relationships while implementing and evaluating social responsibility programs. Below are the specific steps Ben and Jerry’s should take to properly take advantage of its CSR strategy and B-Corp designation.

Track and Measure Social responsibility efforts must be measurable. Measureable tactics have a significant impact on customers, investors, suppliers, and regulators (Solomon, 2013). Ben and Jerry’s must implement a more sophisticated marketing database to heighten their CSR and B-Corp efforts. The use of sophisticated marketing databases are based on wide-ranging data collection. Databases serve as a memory of customer relationships (Lewington, De Chernatony and Brown, 1996). Database marketing has largely been embraced by corporate leaders as ways to improve information systems that allows them to better cope with marketing challenges and fragmentation (Lewington, De Chernatony and Brown, 1996).

Align Assets and Impact Combining CSR and B-Corp strategies allows Ben and Jerry’s to create a significant and continuous impact in the community and corporate world. The positive impact of B-Corp designation is evident in that the number of American businesses that have B-Corp designations represent $1.1 billion in revenue and 54 industries (Solomon, 2013). Ben and Jerry’s must employ impactful investments in their employees, suppliers,

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production efforts, and community. The ice cream maker must develop a new leadership position. The new leader should essentially be a director of environmental and social initiatives. The job description requires regularly researching new developments for environmentally friendly production equipment, as well as, discovering more uses for Ben and Jerry’s dairy waste. The new leader should also be expected to educate the community and employees about the benefits of CSR initiatives. The goal for this new position is to deepen Ben and Jerry’s commitment to CSR, while acting as a public relations officer for all of the company’s social and environmental efforts.

Choose Transparency B-Corp designation requires businesses to meet transparent social and environmental performance standards (Solomon, 2013). Being more transparent allows stakeholders to gain a better understanding of the role and contributions that Ben and Jerry’s has to our society (The rise of transparency, 2012). Therefore, it is crucial for the company to become more transparent about their social efforts and corporate taxes. There is increasing pressure from civil groups, social organizations, and the government for socially responsible companies to clearly communicate their tax reporting and how their taxes are managed (The rise of transparency, 2012; Yongtae, Myung Seok, and Wier, 2012).

Develop A Public Relations Campaign The public relations campaign must be outcome focused and not income focused. Ben and Jerry’s should not discuss the amount of money spent to create programs. Instead present consumers with outcomes only. Tout the results of previous environmental efforts, the significant attention to employees, and the use of Fair Trade ingredients. The idea is to promote goodwill between the company and its constituents through marketing and management communications. The campaign should integrate press releases, feature stories in local and national newspapers, company newsletters, interviews and press conferences, and sponsored events (O’Guinn, Allen and Semenik, 2012).

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CONCLUSION Superior innovation and performance provides Ben and Jerry’s with the opportunity to grow bigger while supporting the environment, employees, community, and suppliers. The most successful companies are those managed by leaders who understand that competitive advantage is realizing, understanding, anticipating, and servicing their customers better than the competition, not just doing the same as the competition (Bhan, 2006). In the case of Ben and Jerry’s, the study found that effectiveness hinges upon integrating CSR and B-Corp strategies. Specifically, the ice cream maker must do a better job of tracking and measuring their customers through marketing databases; aligning their assets to their intended impact on the community; having more transparent tax reporting; and developing a new and improved public relations campaign.

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Social Media and Technology: The Influence on Hawaii’s Hotels CATHRINE LINNES College of Business Hawaii Pacific University PAUL KOWALSKI College of Business Hawaii Pacific University JOSEPH LEMA Hospitality & Tourism Management The Richard Stockton College of New Jersey WENDY LAM Hospitality & Tourism Management Hawaii Pacific University JEROME AGRUSA Hospitality & Tourism Management Hawaii Pacific University This research focuses on the impact of social media on today’s hotel industry. Reference will be centered on TripAdvisor due to its dominant market position within the travel industry market segment. Specifically, this study will examine how: (1) social media technologically connects and interfaces with customers for feedback, reviews, and surveys, in order to reach more users and to increasingly gain popularity; (2) TripAdvisor

Address correspondence to Jerome Agrusa, PhD, Hospitality and Tourism Management at Hawaii Pacific University, (808) 544-9341, [email protected]

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interfaces with Facebook and is present on other social media websites like LinkedIn and Twitter; (3) every year, TripAdvisor awards destinations and properties with the Travelers’ Choice® awards; (4) once awarded, these destinations and properties will bear primary sequence in main search engines and will therefore gain popularity; (5) with these advantages, the hotel industry is to be educated and made aware of the dynamics of social media and the importance of monitoring; (6) one of the main reasons why social media like TripAdvisor increases in popularity is the growing reliance of consumers’ on first hand blogs and reviews for both current and post stays; (7) as a result, there is a growing importance paid by Hoteliers towards social media, which requires changes of behavior and skills of leaders to adapt to social media; (8) and finally, TripAdvisor’s impact on hotel properties in Hawaii. KEYWORDS: Social media, technology, Hawaii hotels, TripAdvisor

INTRODUCTION In this modern age of travel and tourism where ultra-competition exists in all areas, consumers have also become increasingly conscious of their purchase decisions. Consumers dependence on first hand feedback, others’ personal experiences, as well as recommendations from trusted parties has increased as options have multiplied across various segment i.e. product/services, geographic location, price structure, amenities/ facilities, packages, etc. Over the last decade, human behavior has seen an increasing familiarity and dependence on technology namely “The Internet”. As the number of internet users around the world increases, so do the users of travel review websites. Web based programs have thus evolved through the Internet to increase sales and at the same time provide resources that allows consumers to purchase or acquire support to make the purchase decision (Shankar, Smith, & Rangaswamy, 2003). Live feed systems that have emerged through the Internet allow consumers to communicate and relay their feedback. With the advancement of technology and the increasing importance for communication, social media was established via the Internet that served multiple purposes for both consumers as well as sellers.

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Market capture and maximization have become a common goal for service providers. There are numerous websites known for offering advice from real travelers as well as a variety of travel options and planning features. These travel websites compile the opinions and experiences of many previous customers in one convenient place, making it easily accessible to virtually anyone. Because word-of –mouth advertising is so powerful, these websites can have a great influence in attracting customers (De Bruyn & Lilien, 2008). Owens (2012) argues that user-generated reviews are critical in the decision making process and may reassure a customer on their decision to commit to the reservation Travel review websites have essentially revolutionized word-of–mouth advertising. With multiple websites that allows for hospitality organizations to be marketed as well as rated, for instance, Yelp, Four Square, Facebook, Urbanspoon, and Twitter; this study will focus on TripAdvisor and its significant contribution and impact on the hotel industry in Hawaii. It has been over 15 years since the social era started and TripAdvisor has succeeded to be the world’s largest travel site (TripAdvisor, 2013a). TripAdvisor assists potential guests in making their decision where to stay or where to dine along with other sources of information on a destination. Founded in 2000 by Stephen Kaufer, TripAdvisor is one of the first usergenerated websites. Information about hotels, flights, vacation rentals, and restaurants as well as the yearly Travelers’ Choice winners can be found on the website. Twelve years later, TripAdvisor has over 260 million monthly visitors and over 125 million reviews which covers over 3.1 million accommodations, restaurants, and tourist attractions (TripAdvisor, 2013a). The website is available to the public without any charge. The travel website is financed through advertisements. TripAdvisor’s services are very versatile and range from publishing reviews about travel destinations to comparing prices of hotels and flights, while showing the lowest price available on the Web. TripAdvisor is used by customers for different purposes. One of the most common purposes is to research the destination prior to travelling or visiting a restaurant and making a decision based upon the reviews. The travel website also posts forum discussions, which can be helpful to customers in making a decision if the selected destination, hotel or restaurant will meet their needs and expectations. Access to the website’s information does not require being a registered user as well as posting a review, but it is highly recommended as it allows personalizing the website. The use of Trip Advisor is slowly becoming an integral part of trip planning. According to Ong (2012), 61% of those surveyed stated they use reviews to narrow down their choices. In addition, nearly all the respondents of a Travel Weekly survey indicated that reviews have at least “some influence” and approximately one in five respondents


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said that reviews have “Very Much Influence” on their travel choices. The survey also stated that 98% of the respondents who used travel review websites said they would use them again (Chipkin, 2012). Due to these factors, review websites such as TripAdvisor should be a top priority for Hawaii’s hotel managers. TripAdvisor is used worldwide and operates in 34 countries including websites in North America, South America, Australia, Europe and Asia (TripAdvisor, 2013). In China, the company operates under the brand daodao.com and kuxun.cn (TripAdvisor, 2014a.). Currently about more than 20,000 hotels and restaurant can be found on the travel website daodao.com even though it was just launched recently in 2009. Daodao is becoming one of the biggest travel websites and is constantly expanding in China as well as worldwide. The company manages and operates websites under 19 other travel media brands and together the sites attract more than 69 million monthly visitors (ComScore, 2012).

(1) Social Media Technological Connects and Interfaces Customers for Feedback, Reviews and Surveys Before social media gained the importance and reputation which it currently has in today’s society, customers were restricted to exchange information with their travel agents, friends or families. Recommendations or information about the destination were restricted and based on the individual’s perception. Rarely were customers able to compare multiple reviews about a destination. Although times have changed, the importance of word of mouth (WOM) recommendations are still one of the most dominant factors prior to making a travel decision (Looker, Rockland, & TaylorKetchum, 2007; Smith, 1993). Through the use of the Internet and the increase of communication, WOM has gained even more importance. Websites such as TripAdvisor connects customers with each other and makes information and reviews about hotels, vacation rentals and restaurants accessible to the broad public. TripAdvisor also allows customers to compare different reviews of past customers with each other and includes a ranking of similar properties. Therefore, the customer can compare similar restaurants and hotels at the desired destination with each other. In addition, Trip Advisor hosts forums about different travel related topics. The opportunities to network or to gather information are endless.

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(2) TripAdvisor Interfaces with Facebook and Other Social Media Trip Advisor recognized the need to market their website on a variety of social media websites. Internet marketing allowed the company to advertise their services and product free of charge. TripAdvisor is represented on the following social media websites: a. On LinkedIn, the world’s largest Internet based professional network website with more than 277 million registered members in over 200 countries (LinkedIn, 2014). TripAdvisor has currently 43,726 followers from LinkedIn as of February, 2014 b. On Facebook, which is a social networking service with more than 1.23 billion active users as of December 31, 2013 (Facebook, 2014a), Facebook users have currently 740,804 likes on TripAdvisor and 21,054 are talking about it (Facebook, 2014b). Facebook allows creating and joining interest groups and becoming a fan of a page. Organizations like TripAdvisor use this as a form of free Internet advertisement. In 2007, TripAdvisor paid Facebook.com $3 million dollars for the “Where I´ve Been” application allowing them to capture a brand new market (Biggs, 2007; Kafka, 2007; McCarthy, 2007). First introduced in the U.S, the UK followed a few months later. This partnership allows users an instant personalization of both websites. It is advertised on TripAdvisor to sign in via a Facebook account. In addition to it, a direct link on the company’s website can be found where users can sign into TripAdvisor through their Facebook account and therefore connect both of their profiles. Critics mention that the application is an opt-out initiative for its Facebook users. This means that if a Facebook user has not actively disabled the feature in the settings, by visiting TripAdvisor while being logged into the Facebook account both webpages are connected and instantly personalized. Once both accounts are connected, customers are always able to log into their TripAdvisor account via Facebook without requiring another password. This application acts like a personalized travel planner and allows users to connect with their Facebook friends’ reviews and opinions about their latest trips and dining experiences in various ways. The application will post on behalf of the user status updates and photos on the news feed and therefore share the users travel advice


on Facebook. In addition, when researching a destination of interest on TripAdvisor, the user will see which of their Facebook friends have been to that location and what their feedback was. Since this partnership has been launched, 100 million people have been part of this instant personalization (May, 2014). The cooperation with Facebook allows better coverage within the social media network itself. The recent numbers indicate that the average user has over 190 friends in their social network (Backstrom, 2011). A TripAdvisor’s review and opinion is not only shared on the website itself, but is also shared on Facebook, which in return is able to reach more users. TripAdvisor is one of eight partners worldwide that have access to this form of instant personalization. TripAdvisor is currently the only travel site. Adam Medros, the Vice President of Global Products at TripAdvisor stated “We think that’s a really powerful idea, that people inherently do want to share their experiences and their content with their friends. If they give us their permission, we’ll increasingly ask for that permission, to be able to make it easier for your friends to discover the things that you like. And to get ideas and recommendations for the trips that they’re planning.” (Sawers, 2012, p. 1). c. On Twitter, which is a real-time information network that connects private users as well as businesses with its customers, TripAdvisor has currently 1.2 million followers and a total of 9,756 tweets published by the administrators (TripAdvisor, 2014b). Twitter allows the quick sharing of information and news with the group of followers and anyone who is interested in the company’s products and services. This provides an opportunity to build relationships and to engage with customers outside of the familiar website. Beyond the website which TripAdvisor has on Twitter, the company is currently not looking into a deeper integration according to Adam Medros “We’ve certainly looked at that and all the other social networks. We’d consider doing it, but the main thing we want to figure out is what are we getting from it? ...We’ve done a little testing, and users are little more reticent about pressing a button and sharing it out to their Twitter network and followers.” (Sawers, 2012, p. 1). d. Google+, which has been just recently launched on September 20 th 2011, is a social networking and identity service operated by Google

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Inc. The New York Times have declared that Google + as the answer to the social network Facebook and as Google’s biggest attempt to rival Facebook (Miller, 2011). Armano mentioned in his article “Six Social Media Trends for 2012”, that Google struck back in 2011 with its formidable initiative that acts as Google’s “social layer” to the web (Armano, 2011). As of October 29, 2013, Google+ has a user base of more than 540 million surpassing Twitter´s 218 million monthly active users (Daily News, 2013). Adam Medros mentioned that Google+ “When it’s big enough, and makes a dent, then yeah, but right now, Facebook is really the only platform that has meaningful scale and provides a graph that could be of real use.” (Sawers, 2012, p. 1). Four Pillars Hotels in the UK stressed the impact of social media within the hospitality industry. It reported that the search volume on Google for hotels has lost a stunning 70% in the last six years. Instead travelers are using TripAdvisor, Kayak, and Expedia (May, 2014). In addition to social media, TripAdvisor offers a free mobile application for iPhone or iPad users. These free applications are advertised as the ideal tool to plan a trip as it will find the best places to eat, sleep, play wherever worldwide a user travels. Applications allow users to be instantly connected with their favorite websites and to follow news and trends as soon as they are published. For TripAdvisor, this means being connected in a more efficient way with its users, therefore an improvement in communication.

(3) Travelers’ Choice® Awards Created by TripAdvisor Travelers’ Choice® award winners are directly awarded and advertised through TripAdvisor. Awarded by millions of travelers, the winners are published annually including a wide range of categories. The impact of TripAdvisor is tremendous, as it markets the destination itself, including beaches and cities, as well as selected hotels to the public. Therefore a city or area itself can suddenly increase in popularity due to the reach of Internet marketing. For 2012, Honolulu has made the list for “Top 10 Beach Destinations in the U.S.” and also “Top 25 Beach Destinations in the World”. Honolulu was ranked as number 19 of the “Top 25 Destinations in the World”. In addition to destinations, Travelers’ Choice® awards are also given out to Hotels in all categories worldwide ranging from bargain to luxury. Within Hawaii the winners for the “Top 25 Luxury Hotels in the US” are with number six the St Regis


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Princeville Resort in Kauai and with number 25 the “Kahala Hotel & Resort” on Oahu. The category “Top 25 Relaxation/Spa Hotels in the US” lists the “Travaasa Hotel Hana” on the Big Island as number 25. Being awarded benefits the property in numerous ways. The company can publish the title on their website, promote it within their property or use it as an email signature for their internal and external communication. These are just a few examples, how the company can take advantage of this free form of advertisement.

(4) TripAdvisor Itself Uses Review Ratings to Award Establish that Enable Search Engine Optimization Once awarded the Travelers’ Choice® award for example, the organization will bear primary sequence in main search engines, including TripAdvisor itself. When a customer searches for a desired travel destination, the properties which have been awarded the Travelers’ Choice® award will be listed first. This is just another form of free advertisement. Putting this into practice, when searching for the Traveler’s Choice® winner “The Kahala Resort” on the search engine Google, the first website which is listed is the property’s homepage, the second page is the TripAdvisor website and the third one is Yelp’s website. Once clicked on the TripAdvisor link, the Travelers’ Choice Award® will show up immediately. To show another example, the number one winner for the Travelers’ Choice® Award 2012 for Luxury is the “Grand Del Mar Hotel” in San Diego. It is currently the number one hotel out of 246 hotels within the city of San Diego. Just searching for San Diego itself on the search engine Google will guide the user to TripAdvisor’s number one choice the “Grand Del Mar Hotel”. In addition, the hotel itself is marketing their title on the main page of their website. Even the link to the website is named “The Grand Del Mar Resort – Named #1 U.S. Luxury Resort”. The same benefits apply for destinations as well. Cape Town Central is TripAdvisor’s number one destination within the “Top 25 Destinations in the World 2011” ranking. When searching for Cape Town on the search engine Google, the user will be guided to TripAdvisor where the award is mentioned immediately. Search engine optimizations like these are of high value for hotels and destinations. It is not only improving the visibility of certain websites, but also has the effect that more visitors will go on the websites, which are higher ranked on the search results page. This has an enormous impact on Internet marketing. Users immediately see which hotel has the highest ranking or which destination is preferred and recommended by the majority of the population. What used to be friends and family’s recommendation has now tremendously expanded to what the majority of travelers on the Web says.

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(5) The Dynamics of Social Media and the Importance of Monitoring With the increase of communication, the importance to control and monitor the contents of the posts becomes a priority. TripAdvisor as a user-dynamic website carries the risk of abuse via improper or inappropriate use by its customers. Brands are spending a great amount of time and money investing in platforms, but with the increasing amount of social platforms marketing is becoming more challenging. One of the biggest challenges that companies are facing nowadays is to accept that customers are given an increase in power through social media. With all the social platforms, customers are given the opportunity to be more vocal (Merchant, 2012). The relationship between companies and customers are becoming increasingly more emotional than rational. To assure that the reviews are written by former guests and not by hotel or restaurant staff, TripAdvisor established a verification process. Guest’s reviews are not posted to the website immediately. The company established a verification process, which includes the monitoring of the authors IP address and email address. Given that there are any suspicious patterns or the usage of inappropriate language, users can report it to the company, which is then reviewed by a team of specialists. In addition, the website is constantly monitored by the company’s administrators. Besides inappropriate handling, there is a thin line of guests taking advantage of being “a click away from being a critic” (Smith, 2012, p. 1). While some users view TripAdvisor as a great tool to communicate their honest experience to their friends or to potential guests, others take advantage of this privilege. Examples range from upset guests threatening the property to post a negative comment on the website if they do not receive an appropriate compensation, to guests who post daily on social media how frustrated they are with their experience while they are still on property. Today’s social media network “provides consumers with more outlets to sound off”. Fearing a negative online comment or a bad online reputation forces some companies to give in and please the customer whether he or she is right or wrong. “Social media and Web platforms have really changed the playing field in relation to the relationship between the business and the consumer… users have unfettered power” (Smith, 2012, p. 1). One guesthouse owner claims that he is spending more time dealing with unfair reports than actually running his successful seaside hotel, while another owner claims that she has been “branded a racist after turning a potential guest away”. According to the article “Tripadvisor could face legal action over reviews” over 700 members of the hospitality industry have either committed or are considering legal action against TripAdvisor due to unfair reports (Morris, 2010, p. 1).


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(6) There Is a Growing Reliance of Consumers on First Hand Blogs and Reviews: Both Current and Post Stay Hoteliers know the importance of blogs and reviews. Based on reviews and posts, a property can either gain popularity or it can lose its reputation. The dynamics can go both ways. As TripAdvisor publishes rankings, some consumers make their travel decision based on what is ranked the highest and do not read their reviews. According to Sawers (2011), it is often not a good idea to base the opinion on the ratings alone “Sometimes give one star when their only gripe is their soup wasn’t hot enough” (p. 1). In addition, some reviews are just stating personal preferences and are not applicable to other traveler’s taste. It is not uncommon, that hotels are nowadays facing the disadvantages of social media such as TripAdvisor. Some properties claim that they were forced to close their business because of the effects that TripAdvisor had on their online reputation. One example states the “Riverside Hotel and Restaurant” in Worcestershire, England, has been red-flagged by the website. The owner states that they had to face a loss of business due to TripAdvisor’s red flagging of the property. When a review is red-flagged, a warning message appears on its page stating that “TripAdvisor has reasonable cause to believe that individuals or entities associated with or having an interest in this property may have interfered with traveler reviews and or the popularity index for this property.” (Sawers, 2011, p. 1) One of Tripadvisor’s procedures is to check the users email address as well as the IP address. When the IP address is similar to the hotel’s IP addresses it is one of the indicators, that a false review has been posted. Therefore the travel website advises its users to avoid posting reviews directly from the hotel’s lobby or business center. Some properties on the other hand are advertising to users to post fake reviews in return for a small amount of payment. Reviewers are advised to change their email as well as IP address, so that these fake reviews can go undetected by TripAdvisor (Travelweekly, 2011). This trend to post fake reviews are hurting the reputation of TripAdvisor and questioning the trustworthiness of some reviews. Also, this behavior is concerning the travel industry as their competitors might be taking advantage of these practices. The question now is, to which extent can users trust reviews on TripAdvisor? It is a challenge, but to lower the risks, the first thing that consumers should be doing in such circumstances are to take a look at other reviews posted about that property. The company Kwikcheck is one of many Online Reputation Management companies helping businesses worldwide to protect their reputation. In a recent blog posting, the company discusses the difficulties TripAdvisor is now facing. As an example, the company states

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the “Buccament Bay Resort” in St. Vincent, where a reviewer publically claimed, that the review she had written was a fake review. In addition, she states that it was one of many reviews, which were written by hotel associates. “The difficulties for TripAdvisor are clear – a case like this gives TripAdvisor and their claims to reliability and fraud detection a real credibility problem and it’s one that will continue to grow as more cases like this are inevitably revealed.” (Kwikchex, 2012, p. 1).

(7) Growing Importance Paid By Hoteliers Towards Social Media: Social Media Requires Changes Of Behavior and Skills Of Leaders to Adapt To Social Media According to the Bradley and McDonald article in the Harvard Business Review “Using social media to accomplish a meaningful purpose involves more than providing new technology and praying for success… While many organizations are technically ready for social media, they should question the readiness of managers to embrace new ways of working collaboratively to achieve social success.” (Bradley & McDonald, 2012, p. 1). Some properties have put this behavior into practice and established guidelines on how managers can embrace new ways of working with social media. In some properties the Manager on duty’s responsibility is to control social media through their smart phones provided by the company. The manager on duty responsible for either guest relations or food and beverage has to monitor posted reviews and contact the guest in a timely manner, while some properties have a public relations manager who is overseeing social media. In addition, meetings and committees to control and monitor social media are widely used. For the purpose of this research, interviews were conducted with the General Manager Douglas Okada, who is managing the Aston Waikiki Sunset. Ever since his property became accessible to the public on TripAdvisor, he monitors all comments by himself. Whether it is a positive or a negative comment, Mr. Okada responds to the guests “While monitoring social media and responding to guest’s comments I am not solely writing a response to the guest who left the review but also to all the potential guests who are reading through the comments prior to making a decision. Seeing that the property cares about guests’ feedback is crucial and is part of marketing the company.” (D. Okada, personal communication February 19, 2014). Currently, there are 884 reviews written about the property and within the “Honolulu Specialty Lodging” sector it is ranked as the number 11 choice out of 48 properties. One of the reasons for the high ranking is that potential guests see that the


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General Manager himself truly cares about guest relations. The answers to each comment are very detailed and personalized. None of the comments seems like it is an automated response. Douglas Okada: “I make it a practice to respond to all postings, both good and especially the not so good ones. There are always two sides to every story. It is amazing how many people read this website before deciding on their hotel accommodations and I have received numerous emails and phone calls from potential guests, because I respond to each posting. These inquiries give me an opportunity to increase revenue and thus far, I have been very successful with that practice. I will continue to respond to every posting on Trip Advisor.” (D. Okada, personal communication February 19, 2014). Social media has an incredible impact on the hospitality industry, both positive as well as negative. The tremendous number of hoteliers need to realize is that even with its negative impact, it provides the industry with an opportunity to turn a negative experience into a positive with the right approach.

(8) The Impact of TripAdvisor On Properties In Hawaii The top 10 hotels in Waikiki, listed on TripAdvisor is shown belong along with the managers response ratings to its customer as of February 16, 2014. The percentage of consumers consulting reviews at TripAdvisor and competing online sites prior to booking a hotel room has steadily increased over the years, as has the number of reviews being reviewed prior to making their hotel choice. TripAdvisor reported that two-thirds of U.S. travelers reported using social media while on vacation (TripAdvisor, 2013) Table 1 Top 10 Hotels in Waikiki Listed on Trip Advisor 1 Trump

2 Halekulani

Responded to traveler ratings: 125/862 excellent reviews 37/217 very good reviews 7/63 average reviews 1/14 poor reviews 5/13 terrible reviews Total 1,169 Responded to traveler ratings: 0/981 excellent reviews 0/246 very good 0/93 average reviews 0/33 poor reviews 0/22 terrible reviews Total 1,375

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3 Lotus Honolulu at Diamond Head

4 The Modern Honolulu

5 Park Shore Waikiki

6 The Kahala Hotel & Resort

Responded to traveler ratings: 214/291 excellent reviews 54/107 Very good reviews 11/23 average reviews 2/6 poor reviews 4/4 terrible reviews Total 431 Responded to traveler ratings: 56/707 Excellent reviews 14/241 very good reviews 13/80 average reviews 7/33 poor reviews 14/23 terrible reviews Total 1,084 Responded to traveler ratings: 94/108 excellent reviews 46/55 very good reviews 13/14 average reviews 1/1 poor reviews 0/0 terrible reviews Total 178 Responded to traveler ratings: 435/819 excellent 125/231 very good 64/93 average reviews 27/47 poor reviews 22/41 terrible reviews Total 1,231

7 Outrigger Reef on the Beach

Responded to traveler ratings: 85/1859 excellent reviews 54/977 very good reviews 17/231 average reviews 8/84 poor reviews 5/51 terrible reviews Total 3,202

8 Embassy Suite Waikiki Beach Walk

Responded to traveler ratings: 414/910 excellent reviews 203/483 very good reviews 44/109 average reviews 19/40 poor reviews 6/18 terrible reviews Total 1,560

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9 Aston Waikiki Beach Tower

10 Shoreline Hotel Waikiki, a Joie de Vivre Hotel

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Responded to traveler ratings: 152/441 excellent reviews 58/186 very good reviews 14/29 average reviews 6/12 poor reviews 5/7 terrible reviews Total 675 Hotel responded to traveler ratings: 81/134 excellent reviews 46/78 very good reviews 10/14 average reviews 0/3 poor reviews 0/1 terrible reviews Total 230

Disney’s Aulani Resort and Spa located on Oahu, Hawaii, which opened in 2011, already has 1413 reviews on TripAdvisor as of February 16, 2014 and is ranked as number two of three hotels in Kapolei. In comparison, Marriott’s Ko Olina Beach Club which is ranked as number one hotel in Kapolei has 1483 reviews, but has been on TripAdvisor for 11 years. Given the fact that Aulani continues to receive the same amount of reviews as it had since it has opened, the property will have more reviews than the Ko Olina property in the near future. This demonstrates how a new property increases in trend and guests are more likely to post comments on social media. The Trump International Hotel in Waikiki is ranked as the number one hotel in Honolulu on TripAdvisor every month for the past 37 months. As of February 2014, Trump Hotel, was rated the number one hotel in Honolulu on TripAdvisor with a total of 1169 reviews for the 37th consecutive month. “Being new does not hurt” says the Director of Sales and Marketing Mr. Votsis, who has been with the company since its opening. In 1984 the Halekulani was the last hotel being built in Waikiki before the Trump Hotel has been built (Votsis, personal communication February 21, 2014). Referring to Mr. Votsis the properties’ direct competitors are Halekulani and Kahala. The Halekulani property is located across the street and is currently ranked as number two with 1375 reviews. The Kahala Hotel, which is located six miles away from both properties, is currently ranked as number nine hotel with 1231 reviews. Despite the lower ranking, the Kahala Hotel has one competitive advantage through TripAdvisor. The property won the Travelers’ choice award 2012 for one of the best luxury hotels in the United States. The property is ranked as number 25 within the United States and is the only property listed on Oahu (Votsis, personal communication February 21, 2014).

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According to Mr. Votsis, advertising in newspapers becomes less important: “People do not believe in it. You can tie it to promotions that sometimes work. Social media is the focus!” Therefore the sales team does not buy advertisement if it does not have any electronic link. Nowadays the majority of reservations are being booked through the Internet. In the case of the Trump Hotel most business is being booked through an iPad. Once the iPad was available on the market the company’s main focus was to make the website iPad friendly (Votsis, personal communication February 21, 2014). As every hotel needs to monitor its social media, the Trump’s Hotel corporate team is overseeing all social media. Guests are contacted directly when a comment is left on the TripAdvisor website. This provides the company with an opportunity to follow up with either the positive or negative feedback. In the summer of 2011, Starwood created a “Public Relations Management” position for their hotels on the Island of Kauai in Hawaii due to the increase in social media usage by its guests on the island of Kauai. The responsibilities range from overseeing and marketing the social media for the Westin Princeville Resort as well as the Sheraton Kauai Resort in Poipu. Companies are now investing in their online reputation. The playing field has changed and what companies previously use to invest in traditional forms of advertising is now being invested in monitoring online platforms. According to the public relations agency Weber Shandwick, 88% of consumers said that word of mouth opinions online are the main driver what they think of a company. While 80% indicated online reviews and search results determine what they think about a company, 49% reported that social networks are the leading factor (Smith, 2012).

CONCLUSION Prior to the social media era one had professional reviewers who operated under clear guidelines. Now, nearly anyone can post which raises the issue of a business that gets wrongfully rated which potentially can lead to a business shutting down or suffering an enormous economic loss. To survive, many organizations require an on hand dedicated social media experts to manage its image online. TripAdvisor allows companies to respond but many feel powerless in the era of free-for-all nitpicking (Stellin, 2010). Social networks’ consumers create over 256 billion impressions on one another every year. These are done by reviews, posts, blogs and live messaging. Every organization should and is able to analyze these impressions and identify the demographics of guests, what their common concerns are, and in turn make these work.


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(Bernoff & Schadler, 2010). Nowadays, it is crucial for any company and their leaders in the travel industry to focus on social networks and to be informed about recent postings as well as the company’s online reputation. According to a joint study from Booz Allen and social platform developer Buddy Media, 57% of businesses surveyed plan to increase social media spending and 38% of CEO’s label social networks as a high priority (Armano, 2011). Technology has changed the playing field. In recent years TripAdvisor has been publishing a list of the “Dirtiest Hotels” a list you do not want to be on (Sharkey, 2010; TripAdvisor, 2011). Social media has turned the business world upside down making it much harder to defend itself. Companies must have dedicated staff examining the market for reviews and actively monitoring competitors to survive. In 2011, the hotel Tennessee Inn charged defamation in which the judge ruled user opinions are protected. A hotel in Knoxville had to close down its operation when Judge Phillips rejected the claims in 2012 that such as list would not keep customers away. On the other hand Croyle, a spokeswoman for TripAdvisor, applauds the court´s decision, as it continues to publicize the consumers opinion online (Barrouquere, 2013). The wide reach of these sites can have an overwhelmingly positive or a devastatingly negative effect on the amount of reservations a hotel receives. With over 80% of respondents in a Travel Weekly survey stating that they always consult reviews before booking, having a good relationship with the review site is import. A good relation with TripAdvisor can provide high-quality guests at higher prices according to Danette Opczewski, executive vice president for Denihan Hospitality Group (Chipkin, 2012). Many benefits can come from having connections with TripAdvisor and other review websites. Although having a relationship with the review site is important, building a relationship with the reviewer is also essential. Management responses to reviews are important to about 70% of those surveyed by Forrester (Chipkin, 2012). According to TripAdvisor (2012), hotel managers that actively respond to reviews stand to generate more business. Over 80% of those surveyed say that good responses to bad reviews gives them a good impression and show that the hotel truly cares about its guests (TripAdvisor, 2012). However, management responses can also have a negative effect. Sixty-four percent of responders said an aggressive or defensive response would make them less likely to book from that hotel (TripAdvisor, 2012). Responding to past customers' comments although necessary, must be handled carefully. Recently, hotels have been taking a more proactive approach in dealing with review websites. Currently, 98% of U.S. properties say reviews are important for booking, and 91% encourage their guests to post a review. A majority of those properties will also respond to negative as well as positive reviews (Trip Advisor, 2013). Hotel managers are also using these

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reviews to motivate their staff. Almost 70% Hawaii’s hotels congratulate or even reward employees for positive online reviews. A few hotels have gone as far as investing in training to encourage additional positive reviews (Trip Advisor, 2013). Travel review websites are becoming a key element in hotel management. Although review sites play a major role in booking vacations, it is not without challenges. One major problem is the lack of authentication of reviews on TripAdvisor. As a result, hotels can write negative reviews about their competitors, while hiring public relations companies to write positive reviews about themselves. However, the sites that do guarantee the authenticity such as Expedia, have too small of a sampling of guests. Nevertheless, even with their flaws, Trip Schneck, managing partner with District Hospitality Partners, believes that online reviews are here to stay. Schneck indicates that the direction of online reviews centers around verification and personalization (Chipkin, 2012). Travel review websites have grown increasingly influential in recent years. They have become so influential that they can have a very positive or very negative effect on a business. How managers handle online reviews has never been more important. However, because of how quickly things change nowadays, there are still many challenges on the horizon. Managers will need to be able to adapt to stay on top of this new method of word-of-mouth communication and proactive in their approaches.

REFERENCES Armano, D. (2011). Six social media trends for 2012. Harvard Business Review. Retrieved December 21, 2013, from http://blogs.hbr.org/david-armano/ Backstrom, L. (2011). Anatomy of Facebook. Retrieved December 11, 2013, from https://www.facebook.com/notes/facebook-data-team/anatomy-of- facebook/ 10150388519243859 Barrouquere, B. (2013, August 29). Hotel loses suit over TripAdvisor´s ´dirtiest hotel´list. The Seattle Times. Retrieved January 5, 2014, from http://seattletimes.com/html/travel/2021711095_hotellosestripadvisorsuitxml.html Bernoff, J. (2010). Peer influence analysis: Using social technologies to identify your business’s most influential customers. Harvard Business Review Press, 88(3), 2331. Biggs, J. (2007). TripAdvisor Acquires Facebook app where I´ve been for $3 Million. Retrieved January 20, 2014, from: http://techcrunch.com/2007/08/16/tripadvisor-acquiresfacebook-app-wherei’ve-been-for-3-million/


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Bradley, A. & McDonald, M. (2012). Managers need to up their game with social media. Harvard Business Review. Retrieved January 3, 2014, from http://blogs.hbr.org/2012/03/managers-need-to-up-their-game/ Chipkin, H. (2012). Consumer trends 2012: Review websites when making travel plans, most say review websites do play a role. Travel Weekly. Retrieved February 26, 2014, from http://www.travelweekly.com/Travel-News/OnlineTravel/Consumer-Trends-2012Review-websites/ ComScore. (2012). “Media Metrix for TripAdvisor Sites. Retrieved November 12, 2013 from www.comscore.com De Bruyn, A. & Lilien, G. L.(2008). A multi-stage model of word-of-mouth inﬂuence through viral marketing. International Journal of Research in Marketing, 25, 151163. Daily News. (October 29, 2013). Google+ up 540 million active monthly users but still short of Facebook´s 1.2 billion. Retrieved from http://www.nydailynews.com/news/national/ google-540m-monthly-users-lags-behind-facebook-article-1.1500403 Facebook. (2014a). Newsroom. Retrieved February 21, 2014 from http://newsroom.fb.com/Key-Facts Facebook. (2014b). TripAdvisor. Retrieved February 21, 2014, from https://www.facebook.com/TripAdvisor Kafka, P. (2007). Facebook app sells for $3 Million. Insane!!!? Retrieved December 22, 2014, from http://www.businessinsider.com/2007/8/facebook-app-se Kwikchex. (2012). Problems for Tripadvisor. Retrieved January 3, 2014, from http://www.kwikchex.com LinkedIn. (2014). About LinkedIn. Retrieved February 21, 2014, from http://press.linkedin.com/about Looker, A., Rockland, D., & Taylor-Ketchun, E. (2007). Media myths and realities: A study of 2006 media usage in America. Tactics, 10, 21-22. May, K. (2014). TripAdvisor unveils next phase of Facebook tie-in, friends of friends included in reviews. Retrieved February 20, 2014, from http://www.tnooz.com/article/tripadvisor- unveils-next-phase-of-facebook-tiein-friends-of-friends-included-in reviews/ http://www.tnooz.com/article/tripadvisor-unveils-next-phase-of-facebook-tie-infriends-of-friends-included-in-reviews/ McCarthy, C. (2007). Report: Where I´ve been ´Facebook app acquired for $3 million. Retrieved January 23, 2014, from http://techcrunch.com/2007/08/16/tripadvisoracquires-facebook-app-where-i’ve-been-for-3-million/

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Merchant, N. (2012). Why social marketing is so hard. Harvard Business Review. Retrieved February 5, 2014, from http://blogs.hbr.org/2012/03/why-socialmarketing-is-so-har/ Miller, C. (2011, June 28). Another try by Google to take on Facebook. The New York Times. Retrieved November 15, 2013, from http://www.nytimes.com/2011/06/29/technology/29google.html?pagewanted=all &_r=0 Morris, S. (2010, September 24). TripAdvisor could face legal action over reviews. The Guardian. Retrieved December 3, 2013, from http://www.theguardian.com/travel/ 2010/sep/24/tripadvisor-travelwebsites Ong, B. (2012). The perceived influence of users reviews in the hospitality industry. Journal of Hospitality Marketing & Management, 463-485. Owens, R. (2012). Can hotels trust TripAdvisor’s friend of a friend to influence travelers? Angelsmith. Retrieved February 27, 2014, from http://angelsmith.net/inboundmarketing/can-hotels-trust-tripadvisors-friend-of-a-friend-to-influence-travelers/ Sawers, P. (2011). Hotel-owners blackmailed with bad TripAdvisor reviews for not offering freebies. Retrieved February 16, 2014 from, http://thenextweb.com/ Sawers, P. (2012). The future according to TripAdvisor? Mobile, social, and hopefully fewer ‘red flags’ for hotels. Retrieved February 11, 2014, from http://thenextweb.com/ Shankar, V., Smith, A., & Rangaswamy, A. (2003). Customer satisfaction and loyalty in online and offline environments. International Journal of Research in Marketing, 20, 153−175. Sharkey, J. (2010, February 8). A list no hotel wants to be on. New York Times. Retrieved November 20, 2013, from http://www.nytimes.com/2010/02/09/business/09road.html Shaw, L. (2012). Google 4Q earnings miss the mark, Google Plus hits 90M subs. Reuters. Retrieved January 20, 2014, from http://www.thewrap.com/media/columnpost/google-4q-earnings-miss-mark-google-plus-hits-90m-subs-34584 Smith, K. (2012, February 28). Consumers’ online reviews grab companies’ attention. Minneapolis Star Tribune. Retrieved January 18, 2014, from http://www.startribune.com/local/minneapolis/ Stellin, S. (2010, November 26). Unpacking complaints: Hotels seek quicker redress on TripAdvisor reviews. New York Times. Retrieved January 2, 2014, from ProQuest. Travel Weekly. (2011, June 25). Report uncovers market for fake TripAdvisor reviews. Retrieved January 12, 2014, from www.travelweekly.co.uk


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TripAdvisor. (2011). TripAdvisor lifts the lid on America´s dirtiest hotels. Retrieved from http://www.tripadvisor.com/PressCenter-i4557-c1-Press_Releases.html TripAdvisor. (2013). Social media, smartphones & tablets now essential travel tools for U.S. travelers, according to new TripAdvisor survey of mobile & social trends. Retrieved from http://ir.tripadvisor.com/releasedetail.cfm?releaseid=808058 TripAdvisor. (2014a). Fact sheet. Retrieved February 21, 2014, from http://www.tripadvisor.co.uk/PressCenter-c4-Fact_Sheet.html TripAdvisor. (2014b). TripAdvisor on Twitter. Retrieved February 21, 2014, from https://twitter.com/TripAdvisor


Renaissance ArtsFaire’s Economic & Socio-Cultural Impacts on a Local Community SIRIPORN MCDOWALL School of Hotel, Restaurant, and Tourism Management New Mexico State University JAY M. LILLYWHITE Department of Agricultural Economics and Agricultural Business New Mexico State University JENNIFER E. SIMONSEN Department of Agricultural Economics and Agricultural Business New Mexico State University This study explores the economic and socio-cultural impacts of the 40th annual Renaissance ArtsFaire in Las Cruces, New Mexico, U.S.A. on the local community. Data was collected using an on-site intercept survey. Input-output analysis was employed to estimate the festival’s economic impact. Results revealed that the majority of respondents were female, married, repeat customers, residents of Doña Ana county, and earned USD 49,999 or less annually. Most respondents were very satisfied or satisfied with their overall event experience, and the festival enjoys very strong customer loyalty. On average, attendees spent USD 61.30 at the festival. KEYWORDS Las Cruces, Renaissance characteristics, economic impact

ArtsFaire,

attendees,

Address correspondence to Siriporn McDowall, PhD, School of Hotel, Restaurant, and Tourism Management at New Mexico State University, (575) 646-2379, [email protected]

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INTRODUCTION Festivals, defined as planned, public-themed events promoting specific entertainment concepts related to a particular time and space (Getz, 1991; 2008), play an important role in many North American communities. They provide opportunities for positive social interaction (Walo et al., 1996), cultural preservation through arts, crafts and performances (Long et al., 2004), community awareness or appeal (Alves et al., 2010; Getz, 1991; 2008; Grunwell et al., 2008; Kim et al., 2007), community selfperception (Alves et al., 2010; McDowall, 2010), improve the relationship between the community and visitors (Getz, 1991), improve destination attractiveness (Kim et al., 2007), and improve subjective quality of life (Liburd & Derkzen, 2009). In addition to these benefits, festivals often boost economic activity within the community, as outside visitors/tourists participate in the festival spending outside currency within the community (Long & Perdue, 1990). Due in part to these benefits, the number of North American festivals has steadily grown since 1980 (Uysal & Gitelson, 1994). Cultural events play important roles in many local communities, where opportunities to benefit from traditional tourism may be limited (Jaeger & Mycletun, 2009). In these communities, cultural events become major attractions and the community uses them as a marketing tool, often investing city dollars to support the event. Cultural events may also provide sociological/cultural (e.g., quality of life) benefits in addition to economic benefits for the local community. Given the importance of cultural events described above, it is imperative that attendees are satisfied. Attracting attendees is a major challenge that needs to be addressed by all event organizers so that positive community impacts are maintained, as well as ensuring the sustainability and economic and sociological/cultural benefits of the event (e.g., Papadimitriou, 2013). Renaissance faires are an example of a cultural festival with a multitude of potential positive impacts.

History of Renaissance Faires Renaissance faires are popular events for communities across the United States. The festival’s theme harks back to the European Renaissance period (Renaissance being French for rebirth), often considered by historians as the beginning of modern history. During the Renaissance, scholars became interested in the study of classical history, art, and literature, advancing the growth of the arts in Italy. Wealthy families and the church

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became patrons who commissioned great art, which in turn provided financial support to merchants (Browse the World, 2009). Centuries later, U.S. communities re-create the Renaissance period with themed festivals. The more than 180 renaissance faires and festivals across the United States boast a mix of attractions, such as historical reenactments and performance arts (Ren Faire, 1999). Las Cruces and Las Cruces Renaissance ArtsFaire The Renaissance ArtsFaire (hereafter referred to as the RenFaire) has been held annually in Las Cruces, New Mexico (U.S.A.) for more than 40 years. Las Cruces is the county seat for Doña Ana county, with 99,661 residents (U.S. Census Bureau, 2012) and has been ranked as one of the fastest-growing communities in the United States for the past decade (Doña Ana County, 2012). The RenFaire has been held in Las Cruces during the first weekend of November since 1971. It is one of the state’s largest annual cultural events and has captured the heart and minds of the community and surrounding area (Renaissance ArtsFaire, 2009). The faire is organized by the Doña Ana Arts Council (DAAC), a non-profit organization. The RenFaire is the DAAC’s largest fundraiser, acting as a showcase for local artists and performers. Along with revenue from the festival’s admission tickets ($6.00 per adult in 2011), the DAAC raises money by renting booths to area artists and vendors, with the revenues benefiting DAAC non-profit arts programs. The RenFaire is ranked as one of the top four annual activities in Las Cruces and one of the top 100 events in North America (Las Cruces CVB, 2013).

STUDY PURPOSE Despite its longevity and apparent success, the Renaissance ArtsFaire’s success and its economic and sociological/cultural impacts on the local economy are not documented. This paper summarizes research conducted at the 40th Annual Renaissance ArtsFaire held November 5th – 6th, 2011 at Young Park in Las Cruces, New Mexico. The purpose of this study was to: 1. 2. 3. 4.

describe attendees’ characteristics. investigate attendees’ satisfaction and intention to return to the festival. assess the economic impact of the festival on the Doña Ana county economy. explore the sociological/cultural reasons for its longstanding success which may be valuable to managers of other small cultural festivals.


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LITERATURE REVIEW Attendee Satisfaction Initially, festival research focused on exploring attendees’ satisfaction (e.g., Mohr et al., 1993; Formica & Uysal, 1995; Crompton & McKay, 1997). Festival satisfaction is defined as the overall experience attendees had at the festival (Yuan & Jang, 2008). Numerous studies have examined attendees’ satisfaction with the products/services provided at festivals and identified many factors contributing to attendees’ satisfaction in reference to various types and themes of festivals. Overall satisfaction with the festival may be influenced by performance or program quality (e.g., Baker & Crompton, 2000; Yan et al., 2012), information services, service and logistics management, and sanitation (Untong & Piboonrungroj, 2007), as well as by satisfaction with specific events, amenities, and facilities (e.g., Schofield & Thompson, 2007; Mensah, 2013). Experience factors such as atmosphere, uniqueness, cultural theme and self-expression may affect attendee satisfaction (Schofield & Thompson, 2007; Lee & Hsu, 2013). The influence of festival volunteers and employees on festival satisfaction has also been documented (Hubbard et al., 2012). Personal characteristics of attendees, such as attendance motivation (e.g., Savinovic et al., 2012; Lee & Hsu, 2013), may also influence satisfaction. For example, scholars have reported mixed findings relative to the influence of attendee residence on satisfaction. While Formica and Uysal (1995) found no difference in the overall satisfaction levels of local and non-local attendees of an Italian jazz festival, McDowall (2010) found differences in the overall satisfaction levels of locals and non-local attendees of a Thai cultural festival. Later studies explored customer loyalty, an extension of customer satisfaction that assesses whether satisfied attendees would recommend the festival to others or if they themselves would return to the festival in the future (e.g., Uysal & Gitelson, 1994; Snowball & Antrobus, 2002; Sterngold, 2004; Untong & Piboonrungroj, 2007; McDowall, 2010; 2011; Hubbard et al., 2012; Mensah, 2013; Papadimitriou, 2013). Satisfaction has a direct effect on behavioral intentions, such as recommendations to others and intention to return (e.g., Baker & Crompton, 2000; Savinovic et al., 2012; Yan et al., 2012; Mensah, 2013): thus, the sustainability and continuity of the festival depends largely on its customers’ loyalty. Loyalty can be measured by whether attendees would re-visit the destination, recommend the destination to others, mention the festival through positive word-of-mouth, or are willing to pay more to attend (Lee & Hsu, 2013).


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Festival loyalty may be influenced by satisfaction with specific products/services at the event (McDowall et al., 2012; Schofield & Thompson, 2007). Festival loyalty can also be influenced by the uniqueness of the experience and the authenticity of the cultural experience (Schofield & Thompson, 2007). Successful festivals prompt repeat attendance (intention to return next year; e.g., Grunwell et al., 2008; Savinovic et al., 2012) and/or recommendations to others (e.g., Hubbard et al., 2012). Recommendations are more likely to come from attendees who are satisfied with a festival’s quality, culture, programming, and management (McDowall, 2011). Successful festivals engage attendees and encourage spending, resulting in an economic benefit to the community.

Significance of Festivals on the Local Economy One of the benefits of hosting festivals, particularly in rural communities, is that festivals may enhance the local tourism industry by attracting non-residents to the community. In return, their spending will contribute to the local economy (Thomason & Perdue, 1987). Festivals have been used to increase demand for local tourism, develop the area’s uniqueness, and extend the tourism season when planned strategically (Gunwell et al., 2008). The tangible benefits of festivals – which are often measured by their economic impact and the amount of money attendees spend while attending – encourage event organizers and supporters to focus on managing and marketing festivals for economic gain as well as for the continuity and sustainability of the festival. Economic impacts occur as “outside” money is spent on festival attendance and associated activity (e.g., hotel stays from tourists living outside of the local region). Additionally, local festivals may also contribute to the local economy indirectly, as spending by local residents may have been lost to festivals outside the region had the local festival not been held. A number of studies have explored the economic impact of festivals (i.e., Kim et al., 1998; Crompton et al., 2001; Tyrrell & Ismail, 2005; Grunwell et al., 2008; McDowall et al., 2012). The direct economic impacts accrued by a festival vary depending on a number of factors, including festival type, history, and location. For example, film festival attendees spend more per person on food, lodging, shopping and festival activities (i.e., entrance fees to films and gala events) than summer street festival attendees (Grunwell et al., 2008). Demographic characteristics of attendees, such as gender, can also influence attendees’ festival expenditures (McDowall et al., 2012).


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Sociological & Cultural Festival Impacts Conventional economic analyses may not capture the unique cultural enrichment offered by arts festivals such as the RenFaire (Sterngold, 2004). The cultural influences of the arts have been well documented, however. For example, arts festivals can “strength collective identify formation” (Liburd & Derkzen, 2009, p. 144). Previous research suggests rural festivals have a number of community- and individual-level social consequences, such as providing socialization opportunities and increased personal involvement (Reid, 2007). Previous research discussed above has explored a number of areas related to festival success, including attendee satisfaction and loyalty and the economic and sociological/cultural impacts of festivals on the local economy, attendees, and the community. This research has demonstrated that festivals generate more than economic value to the local community and often have intangible cultural and social impacts on the community. Research indicates that the success and continuity of festivals depend on attendees’ support, satisfaction, loyalty, and the quality of festival’s programming. Less research has concurrently explored both these impacts as they relate to smaller festivals or festivals with arts-related themes. Successful festivals generate both economic and sociological/cultural impacts for the area. This study adds to the body of knowledge by attempting to identify both these impacts for a relatively small arts festival.

METHODOLOGY Survey Instrument The questionnaire used in the study consisted of five parts. The first section collected information on the primary purpose of attendees’ visit to the area, their party size, and past attendance at the RenFaire. If participants had attended previously, they were asked to identify the number of times they had attended. The second section of the survey collected information on how respondents acquired festival-related information. The third section of the survey asked respondents to identify their satisfaction with their visit, whether they planned on attending the RenFaire again, and whether, based on their experience with the festival, they would recommend it to others (e.g., friends and family). This section also asked respondents to describe what they liked most and least about the festival. The fourth section of the survey collected information about respondents’ satisfaction with products/services provided at the festival and asked respondents to identify expenditures in six specific attendance-related categories. The final section of


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the survey asked participants to provide demographic information (e.g., gender, age, education, income, marital status, residential zip code).

Data Collection Procedure Thirty university students, previously trained in data collection techniques, were utilized as survey administrators. Data was collected via an on-site intercept survey conducted using convenience sampling during both festival days (November 5 th and 6th). Surveyed participants were intercepted while exiting the festival or while inside the event grounds (a fenced city park). Data collection started at 12:00 pm to ensure attendees had opportunities to participate in event activities before completing the survey instrument. A total of 646 surveys were collected from the 10,210 adult visitors that attended the 2011 RenFaire.

Data Analysis Information provided by respondents relative to their experience at the festival (sociological/cultural festival impacts) and demographic characteristics were summarized using simple statistics (e.g., averages and frequencies obtained with SAS statistical software; SAS, 2004). The economic impact that non-local festival attendee spending had on the local economy was estimated using input-output analysis, facilitated by Impact Analysis for Planning (IMPLAN) software (similar to other studies, e.g., Kim et al., 1998; Brown et al., 2002).

Input-Output Analysis Input-output analysis has a long history of being used to estimate the economic impact specific events within local, regional, or national economic systems. The methodology quantifies the relationships between different sectors of an economic system and traces the movement of dollars between industry participants within the economic system. Input-output analysis requires a number of assumptions in order to quantify the complex relationships existing within an economic system. Simplifying assumptions include: (1) each sector produces homogeneous outputs (i.e., product differences within a specific industry are not accounted for, rather the analysis uses total output and input dollars, (2) linear production functions are used such that factor substitution or economies of size are not allowed, (3) factors of production within sectors


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are assumed to be fully utilized, (4) price changes do not impact resource use, and (5) there are no resource constraints (i.e., input supply is infinite; Leatherman, 1994). Input-output models often subdivide the economic impact of a particular event into three related effects: direct, indirect, and induced effects. Direct effects represent dollar impacts resulting from expenditure changes associated with a particular activity (e.g., festival spending). Indirect effects are the economic impacts associated with industries purchasing goods and services from other industries within the economic system. Induced effects are economic impacts associated with employee compensation and proprietor income that are recirculated through the economy via household spending (MIG, 2013).

RESULTS AND DISCUSSION Demographic Characteristics of Respondents A demographic profile of the respondents, compared to those for New Mexico and the United States, is shown in Table 1. The majority of RenFaire respondents were married (54.9%) and female (63.3%) with some college education (32.4%). The largest age group was between the ages of 18 and 24 (23.3%), followed by 25-34 years of age (21.4%), and 45-54 years old (18.6%). Those 35-44 years of age comprised the smallest group (10.7%). On average, attendees came in groups of two or more and did not bring children with their party. Fifty-one percent of respondents reported an annual household income of USD 49,999 or less.

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Table 1 Demographic Characteristics Survey Respondents

U.S.

%

Total:

150 138 69 120 96 72 645

23.3% 21.4 10.7 18.6 14.9 11.2 100.0

10% 12.8 12.2 14.1 12.5 13.4 75

10% 13.2 13.3 14.5 11.9 13.1 76

Total:

20 50 203 140 41 173 627

3.2 8.0 32.4 22.3 6.5 27.6 100.0

16.7 26.4 31.9 14.2 10.8 100

14.4 28.5 28.9 17.7 10.4 99.9

Total:

407 236 643

63.3 36.7 100.0

50.6 49.4 100

50.8 49.2 100

Total:

151 137 104 90 84 566

26.7 24.2 18.4 15.9 14.8 100.0

30 27 17.3 10.6 15.2 100.1

24.9 25 18.3 11.8 19.9 99.9

Total:

258 343 24 625

41.3 54.9 3.8 100.0

32.6 46.7 20.7 100

32.1 48.8 19.1 100

Ageb 18-24 25-34 35-44 45-54 55-64 65+ Education Some high school High school degree Some college Bachelor’s degree Some graduate schoolc Graduate degree Gender Female Male Income $24,999 or less $25,000 - $49,999 $50,000 - $74,999 $75,000 - $99,999 $100,000 or more Marital status Singled Married Other, please specify a

New Mexico

na

%

%

May not total 646 due to participant nonresponse. b U.S. and New Mexico totals do not sum to 100% as the population under the age of 18 was not included. c U.S. Census Bureau does not collect information on this category. d Defined by the U.S. Census as "never married." Source: Primary data and U.S. Census Bureau (2012)

Based on surveyed responses, the festival attracted a significant number of nonlocals (visitors from outside Doña Ana county; 38.8%). Surveyed festival participants came from 16 different states, including New Mexico. The majority (59.7%) of non-local


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attendees were from neighboring El Paso, Texas. El Paso, located approximately 45 miles south of Las Cruces, was ranked as the 65th largest Metropolitan Statistical Area the United States in 2011, with 665,568 residents (U.S. Census Bureau, 2011). It is common for residents of El Paso and Las Cruces to travel between the two cities for various cultural, sporting, and other events. Extrapolating the surveyed respondent demographics to total RenFaire attendees, as reported by the Doña Ana Arts Council, it is estimated that nearly 4,000 non-locals attended the 2011 RenFaire. For 31% of respondents, the 40 th RenFaire was their first time at the event (n = 645). Repeat visitors had previously attended the RenFaire, on average, more than 5 times.

Customer Satisfaction & Loyalty Surveyed RenFaire attendees were asked to rate their satisfaction with ten products and services offered at the 2011 festival using a five-point Likert scale (with 5 indicating “very satisfied” and 1 indicating “very dissatisfied”). The success of a nonprofit-oriented event depends largely on volunteers and booth employees, and the RenFaire appears to have succeeded in this area: 93.4% of respondents were satisfied or very satisfied with the friendliness of employees/volunteers (Table 2). Only 66.1% of respondents were satisfied or very satisfied with the cost of the admission ticket. Satisfaction with individual products and services, such as admission fees, can be used to improve these aspects of the event experience in subsequent years, allowing managers to work toward the goal of improving customer satisfaction. It appears that satisfaction with every attribute of the festival is not necessary, however, for overall event success, as evidenced by this festival’s longstanding continuity within the community. Moreover, respondents who were visiting the RenFaire for the first time had slightly lower overall satisfaction with the event than respondents who had previously attended the RenFaire (mean overall satisfaction scores of 4.40 and 4.48, respectively). These findings suggest this festival’s attendees have strong positive perceptions of the event’s overall quality, which in turn may influence their sustained involvement (reattendance).

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Table 2 Respondents' Satisfaction with Specific Elements of the RenFaire Very Very Dissatisfied Dissatisfied Neutral Satisfied Satisfied % of Respondents

Friendliness of employees/volunteers Overall satisfaction with this event Quality of vendors Music & entertainment Overall quality of the event Transportation/parking Overall experience you had with this event Location of event Food Drink/beverage Cost of admission ticket

Mean

SE

n

0.2%

0.3%

6.1%

33.3%

60.1%

4.53

0.03

637

0.8 0.0 0.2

5.8 1.3 0.3

40.5 9.1 6.8

52.7 33.5 41.3

0.2 56.1 51.5

4.46 4.45 4.44

0.03 0.03 0.03

639 638 637

0.0 0.5

0.9 1.1

6.1 10.5

42.8 33.0

50.2 55.0

4.42 4.41

0.03 0.03

638 631

0.3 2.2 1.7 1.3 2.2

1.4 9.4 6.4 6.1 9.7

8.3 18.6 24.5 25.2 22.0

39.7 34.8 35.5 37.3 38.8

50.3 35.1 32.0 30.1 27.3

4.38 3.91 3.90 3.89 3.79

0.03 0.04 0.04 0.04 0.04

638 630 597 611 640

Similar to previous research, customer loyalty was measured using return and recommendation intentions. Attendees were asked “Would you attend the Renaissance Artsfaire again?” and “Would you recommend the Renaissance Artsfaire to a friend or relative?” Respondents rated each question using a 5-point Likert scale. In the first question, a rating of “5” indicated “very likely” and “1” indicated “very unlikely,” while in the second question, a rating of “5” indicated “strongly recommend” and “1” indicated “strongly not recommend.” The majority of respondents (63%) were very likely to attend the festival again, 24% were likely, 7% were neutral, and 6% were unlikely or very unlikely to do so. Similarly, the majority of respondents (62%) would also strongly recommend the festival to a friend or relative, 31% would recommend, 5% were neutral, and 2% would not recommend or strongly not recommend the festival to a friend or relative. Locals (those living within Doña Ana County) were more likely to reattend the festival than non-locals (mean likeliness to reattend score of 4.53 and 4.28, respectively). Customer loyalty plays an important role in festival continuity. The success of the festival depends on how well it attracts new customers, satisfies them with products or services, and how well the festival can convert those satisfied customers into loyal (repeat) customers. As 82% of non-locals stated they were likely or very likely to


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reattend the festival, the RenFaire appears to foster strong customer loyalty. Results suggest that this festival is successful in maintaining its customer base. Previous research has found that repeat visitors are more satisfied with a festival than first time visitors (Mohr et al., 1993): our findings support this relationship between satisfaction and repeat visitation.

Attendee Expenditures Surveyed respondents were asked to identify expenditures related to attendance at the festival, including those made in conjunction with the festival but outside of actual attendance (e.g., meals eaten outside of the festival but in the local area). Total festival attendees expenditures were extrapolated based on expenditure responses provided by 530 surveyed attendees related to six different expenditure categories: 1) admission fees; 2) food/beverage; 3) lodging; 4) transportation; 5) souvenirs/gifts/arts and crafts; and 6) miscellaneous (“other” items). Table 3 summarizes total spending by both local and nonlocal festival attendees. Surveyed participants indicated that they spent an average of USD 61.30 while attending the festival (including expenditures outside the festival itself, such as hotel stays). This expenditure pattern is similar to that of another local festival (USD 78.41 per person; Hubbard et al., 2012), but less than per-person festival expenditures reported elsewhere in the literature. For example, Grunwell et al. (2008) reported a total mean spending per person of USD 305.12 for Asheville Film Festival participants, compared to per-person expenditures of USD 181.61 at Bele Chere, a street festival. On average, locals spent USD 56.35 at the festival, while non-locals spent USD 67.64. Expenditure differences between the two groups (locals and non-locals) were driven by higher expenditures made by non-local attendees in all categories except in the category of souvenirs, gifts, and art.1 The results of this study support previous festival research, which indicated that the main customers of festivals are locals, whose support makes the continuance of the festival possible (Getz, 2008). The extrapolation assumes that expenditures for children were included by adults in their responses and may underestimate the total expenditures made in association with the festival.

Entrance fees were set equal to the listed entrance fee of $6.00 (not taken from survey instrument). 1


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Table 3 Average Per-Person Expenditures at the RenFaire by Category Expenditure Category Admission Fee Hotel Food & Beverage Transportation Souvenirs/Gifts/Art Other Total

Attendees Local Non-Local $ 6.00 $ 6.00 0.00 2.41 12.66 16.97 1.35 5.31 33.57 29.81 2.77 7.14 $ 56.35 $ 67.64

Economic Impacts Average expenditures for surveyed non-local attendees who indicated that their primary purpose for travel to the region was to attend the RenFaire were extrapolated to estimate the direct economic impact that the festival had on the local economy, i.e., Doña Ana county (approximately one quarter of the sample were identified in this group). Expenditures from non-local attendees who indicated the fair was their primary purpose for traveling to the region were used as these expenditures represent “new” or “outside” dollars that would not have otherwise been spent within the local economy (Murphy & Carmichael, 1991) and can be reasonably attributed to the fair. 2 To the extent that without the Renaissance Faire, local attendees may have traveled to festivals outside of the region, the estimate may underestimate the total economic impact that the festival has on the local economy. Expenditures made by non-locals who did not indicate that the faire was their primary purpose for traveling to the region were not included in the analysis, except for faire entrance fees. Other non-faire expenses cannot be directly attributed to the RenFaire. That is, a person traveling through the region would have spent money on a hotel accommodations and food in the region regardless of their attendance at the RenFaire. Excluding souvenirs, gifts and arts purchases made by these individuals may understate the impact of the faire if these purchases were made as the result of faire attendance and would not have been made without faire attendance. Future work may attempt to ascertain this information. 2


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The USD 166,603 dollars spent by non-local festival attendees described above, when margined to account for immediate leakages outside of the local economy (e.g., only the retail margin associated with gasoline expenditures are circulated within the local economy; the majority of the dollars spent on gasoline by festival attendees is associated with raw material costs that immediately leave the county as payment is made to a non-local refinery), resulted in a direct effect on the local economy of USD 111,209 (inflated to 2013 dollars). Subsequent rounds of indirect and induced spending are estimated to contribute an additional $47,103 in spending. The economic multiplier associated with festival expenditures, calculated as direct expenditures (before margining) plus indirect and induce spending divided by the direct expenditures (before margining), was 1.28, suggesting that every dollar in direct effects (again, accounting for margined goods and services) results in an additional USD 0.28 in local economic output. This multiplier is similar to those reported in previous research exploring the impact of festivals (e.g., Chhabra et al., 2003). Table 4 shows the top ten industries positively impacted by the 2011 Renaissance Faire. Table 4 Top Ten Industries Affected by the 2011 RenFaire Sector Food services and drinking places Retail Stores - Miscellaneous Other support services Imputed rental activity for owner-occupied dwellings Real estate establishments Hotels and motels, including casino hotels Offices of physicians, dentists, and other health practitioners Monetary authorities and depository credit activities Private hospitals Retail Stores - Gasoline stations

Output ($) $45,480 40,704 23,855 4,497 3,976 3,485 2,583 2,220 2,105 1,688

Sociological & Cultural Impacts While the economic impact of this festival does not seem particularly large, it is important to recognize that the complete value of the festival cannot be expressly quantified. For example, participants at one festival note that the festival “has a greater social than economic impact on the local community” (Alves et al., 2010, p. 33). These


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social impacts are especially true with arts festivals. “Smaller and more locally oriented [nonprofit arts and cultural organizations]” such as the RenFaire “…may contribute more to a community’s quality of life and long-term development than do their large counterparts” (Sterngold, 2004, p. 184), who may seem more successful as defined by economic impact. After all, “even the most accurate economic impact study of a public good… will not account for its full value because such a study cannot give a monetary value to the positive externalities which such goods provide” (Snowball & Antrobus, 2002, p. 1318). These externalities were noted by RenFaire participants: one participant enjoyed “the exposure to a different era,” while others enjoyed the “educational/fun stuff for kids” and the “atmosphere.” Although these experiences cannot be easily valued economically, they contribute to attendees’ quality of life and local community. Another sociological benefit of the festival is that the RenFaire offers the opportunity to foster a sense of place, that is, feeling of belonging and identity for people involved and for the community (e.g., Quinn, 2005). Smaller community festivals draw local support (Jaeger & Mykeletun, 2013). Small festivals such as the RenFaire require significant involvement from the community to produce (and attend) the festival. For this festival, the locals take pride in their involvement, as shown by the attendees’ very high satisfaction with the friendliness of the Faire’s volunteers and employees. To aid in capturing the sociological/cultural impacts of the festival on attendees, respondents identified their favorite activities/items in an open-ended question when completing the survey. While opened-ended questions are more time-consuming to answer, the majority of respondents (89.78%) chose to answer what they liked the most about the event. The most popular aspects of the RenFaire were its food, arts, crafts, costume, and “everything” (Table 5). The festival’s arts, crafts, and period costumes support the event’s Renaissance theme. Vendors and attendees are encouraged to dress up in period attire, and attendees can purchase period costumes at the festival. To enhance the Renaissance atmosphere, a “Royal Court” is appointed and takes part in a parade, to which travels throughout the streets of the Faire. Food provided at the festival also reflects the Renaissance theme, and vendors provide Renaissance-era delicacies such as ale and mutton stew. Attendees very much enjoy these aspects of the event, as evidenced by their survey responses.


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Table 5 Favorite Activities and Aspects of the 2011 RenFair, As Identified by Attendees (n=580) Activity/Aspect Food Arts Crafts Costumes Everything Entertainment Atmosphere Booths Vendors Shows

Respondents n % 146 25.2% 70 12.1 61 10.5 51 8.8 43 7.4 40 6.9 39 6.7 39 6.7 39 6.7 30 5.2

CONCLUSIONS The purpose of this study was to document a success of a small cultural festival held in a small community, whose primary goal in hosting the event is to support the host organization (DAAC) and other non-profit organizations in the local community. Data was collected using a site-intercept survey of a convenience sample of festival attendees. Descriptive statistical and economic impact analyses were conducted on the data. Results indicate respondents were very satisfied with the friendliness of employees and volunteers, as well as with the festival itself. Given the contribution of the festival to the community and the unique theme of the festival, it is not surprising to see the cooperation of locals in the form of volunteers to work together to make this event a memorable and successful festival in the city. The majority of attendees were repeat visitors, having attended this festival five or more times before. Given the size of the host community and festival, the satisfaction in these areas has contributed to the success and continuity of the festival for over 40 years. Results suggest that the festival organizers pay attention to customers’ wants and needs and seek to satisfy them, demonstrates the influence of quality planning, organization, and management on event success. This festival generates revenue for a local arts non-profit and an economic impact on the local economy. The total spending across all categories by all visitors at this festival was USD 61.30. The top three expenditure categories among respondents were


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souvenirs/gifts/arts, food/beverage, and admission fees. Local food service, retail stores, art promotion, and lodging industries benefited from the indirect and induced impacts initiated by non-local festival attendee spending. In addition to economic impacts, this festival has a number of sociological/cultural impacts on its attendees and the broader community. The RenFaire is an excellent example of a successful small community event, of which there are many throughout the United States. These events attract more locals than non-locals, serve as a social gathering place for locals, and promote a sense of community pride as locals work together to host a successful event years after year. The results of this study indicate that the RenFaire impacts the community’s social and cultural structure and attendees’ quality of life, which is perhaps more significant than its economic impact. The festival provides a place and space for artists to showcase their talent through the arts, exchange their ideas, and gain inspiration. Other relatively small, local festivals seeking to enhance the region’s quality of life and impact the community in other sociological/cultural ways may consider the success of this festival when managing their own event.

RECOMMENDATIONS Based on the results of this study, the following steps are recommended for those who are responsible for managing similar small events like the RenFaire: 1.

2.

3. 4.

In order to better understand customer preferences and satisfaction levels, management should conduct a customer satisfaction survey, similar to the survey used in this analysis, on a regular basis. The survey frequency depends on a number of factors, including resource availability and findings from previous surveys. Maintain the quality and monitor the price of souvenirs/gifts/arts and food and beverage, as respondents spent the most on these two categories while attending the festival. Continue to provide products/services to meet local customers’ expectations, as locals were the primary event customers. Manage the quality of the festival program. This could be influenced by providing a variety of components, taking sponsor requirements into consideration, arranging for multiple activities within the event to happen simultaneously, investing in organization and planning, being attentive to details, allowing for flexibility, cooperating and coordinating the festival with existing tourism products, and learning


5.

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from previous event mistakes. Market the festival to attract non-locals and expand the customer base, as this group spent more than locals at the festival. This can be achieved by utilizing available advertising venues, such as radio/newspaper.

Limitations and Suggestions for Future Research Study limitations that should be noted include (1) the use of convenience sampling (site-intercept survey), (2) potential understatement of youth impacts, both on qualitative and quantitative measures of the festival’s impact on the local community/economy, and (3) omission of volunteer and vendor impacts on the local economy. While this study identifies major aspects of the RenFaire influencing attendees’ quality of life, a more holistic study of sociological impacts to both attendees and non-attendees could be valuable for festival managers seeking to document their festival’s positive impacts on the community as a whole. Moreover, further research is needed to identify additional metrics for the sociological and cultural (non-financial) impacts of small festivals such as the RenFaire.

Acknowledgements This research was made possible through the support of New Mexico State University’s Agricultural Experiment Station. This research was also conducted with the support of the Doña Ana Arts Council (DAAC), which assisted with the development of the survey.

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